How to get rid of Secured Loan??

Apples2

hachiman wrote: »

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.

You took out a Secured Loan at an eye watering APR repaying over many many years so you could have a Holiday??
Well that was a good idea, as was using it to buy a car, that car will be a distant memory by the time the loan is clear. I take it the etc. etc.'s are things already gone and forgotten.

hachiman wrote: »

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.

We see lots of posts from people complaining that these greedy lenders expect more in return than they lent out.

When you get repossessed, the money will still be owed. If you have no equity, they will chase you through the Courts.
Your credit file will prevent you borrowing from anyone at all... you are running toward bankruptcy.

Your ideas of having a house paid for in the future are diminishing all the time.


The only interesting thing about Welcome is that they were one of a very small handful of lenders who gave struggling people a second chance.
True to form, those people they lent to stopped repaying their loans. This left them witout the buffer cash during all the PPI debacle so they couldn't pay up.

gb12345

Apples2 wrote: »

You took out a Secured Loan at an eye watering APR repaying over many many years so you could have a Holiday??
Well that was a good idea, as was using it to buy a car, that car will be a distant memory by the time the loan is clear. I take it the etc. etc.'s are things already gone and forgotten.

It appears that stupid ideas are not a new concept to the OP.

Cycrow

being made homeless for "needing" a holiday is insane

[Deleted User]

On the positive side, if you stop pay the secured loan, you wouldn't have to worry about making the mortgage payments any more either, as you won't have a house.

So a win win situation, really.

IainHL

You seem to be saying that you could afford to switch to interest and capital on your main mortgage (were it not for the Welcome secured loan). How many more years does the Welcome secured loan still have to run? How much more do you still owe on the Welcome secured loan?

I would suggest that you look to trying to overpay the Welcome secured loan as much as possible to clear it first. Then you will be in a position to overpay on your main mortgage thus reducing the amount outstanding on that. You may not get it totally clear by the end of the 18 years, but at least you will have done your best to reduce the amount outstanding as much as possible.

Cycrow

IainHL wrote: »

You seem to be saying that you could afford to switch to interest and capital on your main mortgage (were it not for the Welcome secured loan). How many more years does the Welcome secured loan still have to run? How much more do you still owe on the Welcome secured loan?

I would suggest that you look to trying to overpay the Welcome secured loan as much as possible to clear it first. Then you will be in a position to overpay on your main mortgage thus reducing the amount outstanding on that. You may not get it totally clear by the end of the 18 years, but at least you will have done your best to reduce the amount outstanding as much as possible.

sounds to me like they were already on an interest only mortgage from the beginning because they couldn't afford anything else.

then added a loan on top of them.

so its not surprising they've been struggling

olivia84

i really, really don't want to sound harsh to the OP but no wonder the credit hangover happened in this country. i do think he is not totally at fault here though. for a decade or so, we have all had money and credit thrown at us irresponsibly by lenders and now the rise of fee paying debt management companies etc have made it totally acceptable to 'bump' a load of credit and make out that "you're entitled to a life, and if paying back your debts at the rate you are means you are struggling to afford sky tv and an annual holiday" then they can help.

people who are in a lot of debt sometimes really believe that they are such victims and focus too much on how to avoid their debt instead of focusing on cutting back and paying their debt. (obviously i know their are circumstances when people's debt levels are so high they genuinely cannot afford to live)

some people just cannot accept that they got themselves into the debt they did and they should pay it back. it's all the lenders faults or society's fault for making them want the materialistic things they spent the credit on.

anyway, enough of the lecture. OP, i don't see how bumping your secured loan will help your son in the long run. you could lose your home altogether and not be able to get another mortgage for a long long time. i don't know why you think this is helping secure his future.

i would either; see about remortgaging your home and paying off the secured loan and getting onto repayment asap or continue to make your secured loan payments and when the loan is paid as per the agreed terms, go onto repayment then.

olivia x

DCFC79

Cycrow wrote: »

being made homeless for "needing" a holiday is insane

Yes very, im still struggling to get my head round it all, taking out a loan with a high apr for a holiday is wrong.

OP I hope the holiday and car are worth the mess your in.

_Andy_

Got to love when people ask for advice, ignore the thread, don't thank people for responding, then start another thread. Wonderful.

opinions4u

I couldn't read the post due to the terrifyingly awful choice of font.