Normal Practice?

AllBoroKing

Hello there, looking for some advice if possible....

Myself and my partner took out a loan for 50k in 2007. Today we have called the company to discuss an early redemption figure (as we have sold our house) and despite paying nearly £37k in 7 years we still owe them £47.5k and have in fact only paid off just over £2000!

Is this normal/legal practice that we are only paying off interest on this loan or should our figure be reduced more in this time?

I would appreciate any comments or advice on this so we can plan our next course of action.

Thanks

~Beanie~

It's possible. What is the interest rate and how long was the loan for? Did you have any late payments or arrears?

Gaz83

AllBoroKing wrote: »

Hello there, looking for some advice if possible....

Myself and my partner took out a loan for 50k in 2007. Today we have called the company to discuss an early redemption figure (as we have sold our house) and despite paying nearly £37k in 7 years we still owe them £47.5k and have in fact only paid off just over £2000!

Is this normal/legal practice that we are only paying off interest on this loan or should our figure be reduced more in this time?

I would appreciate any comments or advice on this so we can plan our next course of action.

Thanks

Impossible to answer without knowing what the interest rate was, how much you were paying per month, and how long the loan was for. It's certainly possible, though.

bargainbetty

You can request a full statement and breakdown of the account and all payments received. Check the interest is being applied correctly and that you have abided by all the terms so no fees have been added.

Check the situation - it's hard to offer advice without knowing interest rates, repayment terms etc.

dealer_wins

If the loan was at a high interest rate over 25 or 30 years +, then its a result you have reduced the balance by £2000!

jonesMUFCforever

............check if any arrangement fee and/or some kind of ppi has been added on at the beginning.

PeacefulWaters

AllBoroKing wrote: »

Myself and my partner took out a loan for 50k in 2007. Today we have called the company to discuss an early redemption figure (as we have sold our house) and despite paying nearly £37k in 7 years we still owe them £47.5k and have in fact only paid off just over £2000!

Is this normal/legal practice that we are only paying off interest on this loan or should our figure be reduced more in this time?

I would appreciate any comments or advice on this so we can plan our next course of action.

Thanks

£50k over 25 years at 12% wouldn't be a million miles off.

Throw in a brokers fee or early redemption penalty and it could easily be correct.

Gaz83

Dum dum dum!!!

Ignoring the obvious spam in the post above, are we going to get any further info from the OP? Or is he / she another one-post-wonder?

Clive_Woody

johnruso wrote: »

Actually I am not interested to any loan. Because every loan make to weep and it press on our head. So I will not tell anything about it. But I will inform you a interesting talk.
The thing about personal finance is it’s often a really boring and dry. Bit I will tell about a real way to start a personal finance profit which makes it much more entertaining. thanks

Sounds great. I am in :money: