How to get rid of Secured Loan??

hachiman_2

Hi

I have a mortgage which is interest only and a secured loan. The secured loan is a real killer for us and we can just about afford the loan and the mortgage, but i'd much rather get rid of the loan and start to pay the Mortgage back properly.

Is there any way to get rid of this loan or reduce the payments? I'm pretty sure I've already paid what was loaned, but not really making a dent in the amount still owed.

I am in Scotland by the way.

Thanx


Hi



My wife and I havehad an interest only mortgage for the last 7 years. To be honest the mortgagewould probably never have been approved on our salary’s, but we went through adodgy broker who against all the odds managed to get us it. We put around£15,000 down at the beginning, but like I said earlier the remaining mortage isinterest only. However we also later took out a secure loan with WelcomeFinance about a year or so later as we needed to buy things like a car for work,a holiday etc etc.



And it’s basically okat the moment as the mortgage is probably about half of what the property’scost to rent around here monthly. However we are now starting to think aboutthe future. What happens in 18 years time when all we have done is pay intereston the mortgage and no capital. We have a special needs son and want him tohave security when we are gone. My wife and I are not big earners and we canjust about make ends meet at the moment. We can just about afford the capitaland interest payments if we change to this, and if (And this is the big IF.) wedidn’t have the loan from Welcome. Welcome are an interesting company as theyseemed to go through some sort of buyout/administration a couple of years agoand were always phoning us asking if we wanted to pay their loan back sooneretc etc which we politely declined. They also seemed to have closed theiroffices and opened up new one’s elsewhere and also no longer do loans(Accordingto them.) We have more than paid the original amount borrowed, but they stillhave their claws in us and if we stick to the original agreement we will havepaid back approximately 3 times the amount borrowed at the end of the term. Ihave called them and I know we could end the secured loan sooner, by increasingtheir payments, but it means we then have less time to be in a position tostart going Capital and Interest with the mortgage.

So the reason I amposting this message is to ask about the secured loan.

If we stop(Yes bumpthem, Stop paying) paying the loan whatcan they do?. Our mortgage is interest only so we don’t really own any of itapart from the £15k we put in at the start. We don’t care about credit scoresor anything like that. We just want to be able to have our mortgage paid in 18years for our kids and especially our son.

Thanx

Cycrow

you get rid of it by paying it off

HappyMJ

hachiman wrote: »

Hi

I have a mortgage which is interest only and a secured loan. The secured loan is a real killer for us and we can just about afford the loan and the mortgage, but i'd much rather get rid of the loan and start to pay the Mortgage back properly.

Is there any way to get rid of this loan or reduce the payments? I'm pretty sure I've already paid what was loaned, but not really making a dent in the amount still owed.

I am in Scotland by the way.

Thanx

Remortgage the whole lot. If your credit is good and your equity enough then you can remortgage the first charge being the mortgage and the second charge of the loan into a whole new single mortgage.

John1993_2

It's not clear what you are asking here. If you want to "get rid" of a loan, then you need to ask for a settlement fiigure, and pay that back.

Having paid back the original loan amount isn't really a relevant fact, your deal would be to pay back a cretain amount plus interest. If it's over a lot of years then the total repayments can be several times the original loan amount.

Have you asked for a settlement figure yet?

_Andy_

hachiman wrote: »

Hi

I have a mortgage which is interest only and a secured loan. The secured loan is a real killer for us and we can just about afford the loan and the mortgage, but i'd much rather get rid of the loan and start to pay the Mortgage back properly.

Is there any way to get rid of this loan or reduce the payments? I'm pretty sure I've already paid what was loaned, but not really making a dent in the amount still owed.

I am in Scotland by the way.

Thanx

Yes you could potentially remortgage on a capital repayment basis to consolidate the two.

Clive_Woody

hachiman wrote: »

Hi

I have a mortgage which is interest only and a secured loan. The secured loan is a real killer for us and we can just about afford the loan and the mortgage, but i'd much rather get rid of the loan and start to pay the Mortgage back properly.

Is there any way to get rid of this loan or reduce the payments? I'm pretty sure I've already paid what was loaned, but not really making a dent in the amount still owed.

I am in Scotland by the way.

Thanx

The traditional way of getting rid of this sort of loan is making all of the required repayments. I assume a similar approach is encouraged in Scotland.

JuicyJesus

Clive_Woody wrote: »

The traditional way of getting rid of this sort of loan is making all of the required repayments. I assume a similar approach is encouraged in Scotland.

Now. This is the ONE thread I will tolerate a crack about Royal Bank of Scotland/Fred Goodwin in

juliedawn_2

we are in the same situation...luckily we have been offered a remortgage to pay off secured loan and existing mortgage....saving us £130 a month too.will be repayment too so at least we know it will be paid off.

gb12345

hachiman wrote: »

If we stop(Yes bumpthem, Stop paying) paying the loan whatcan they do?. Our mortgage is interest only so we don’t really own any of itapart from the £15k we put in at the start. We don’t care about credit scoresor anything like that. We just want to be able to have our mortgage paid in 18years for our kids and especially our son.[/FONT][/SIZE]

Thanx

They will totally trash your credit history and try to make you homeless. You may also find that when the house is sold at auction it will go for a pittance so you will still owe them money.

You will be unable to get any form of credit and landlords will be wary about letting to you when they see the CCJ.

~Beanie~

Well the short answer is that they can take you to court and apply to get your house repossessed.

TadleyBaggie

This is your second thread on the same subject: https://forums.moneysavingexpert.com/discussion/4757665=

I guess you didn't like the answers you got?