Secured Loan Stopping us moving - need help

Pauliepaul_2

Hi all,

I,m new here so please forgive me if this is in the wrong place.

I was wondering if anyone can help or offer advice. My wife and I and our little one are trying to move. We have spoken to first plus who the secured loan is and they are happy for us to transfer to the new place, but we are struggling to find a mortgage because of the child care and the loan. Each mortgage company has said that we don't meet the affordability checks. I find this hard to believe because we have been paying all our bills. For the last 8 years with no arrears.

Also I have looked into our first plus loan and felt that it was missold to us because we have been paying since 2007 £55,000 off it but there is such high interest it never pays any off the loan.

Can anyone help or offer kind advice because we have a buyer on our flat and have an offer accepted on a house and we don,t want to loose out.

Many thanks.

kingstreet

Affordability changed earlier this year and those with existing credit and childcare will find they can borrow less than previously was the case.

However, some lenders will still lend more than others so you need to ensure you have a complete view of your options. This can only be achieved by talking to an independent broker.

As you have probably discovered, you will need a deed of postponement from First Plus to allow you to sell your current property and you will also need your new mortgage lender to agree to a second charge being placed on the new property. Many will not accept this, so again, broker advice is essential.

Presumably you bought a First Plus loan knowing the interest rate and the payments, so it could only have been mis-sold if someone advised you the rate would be one thing and it turned out to be another. Is it an interest-only loan with no capital repayments? If so, did the advisor who sold it to you discuss/explain and document how the loan capital would be repaid?

You really should have resolved the mortgage issues before you marketed your current property and definitely before you offered on another property.

Pauliepaul_2

Many thanks for the advice.

We have spoken to a broker and they have said that no lenders will be interested, so I don't know why else to do about.

Has regards to first plus, we were not told about the interest rate and I don't know if it is an interest only loan. If it is who can I complain too because this is unfair.

chanz4

yourself about it

kingstreet

Pauliepaul wrote: »

we were not told about the interest rate and I don't know if it is an interest only loan

You bought a loan not knowing the interest rate and how it would be repaid?

Did you not get a quotation or an agreement setting out these things?

On the mortgage, get a second opinion from another broker (make sure they are independent/whole market, not a part-time mortgage broker, nor in an estate agency) before you give up.

ACG

You took out a £55k loan without knowing the interest rate?

mrginge

Pauliepaul wrote: »

Has regards to first plus, we were not told about the interest rate and I don't know if it is an interest only loan.

Good luck proving that one.