Secured Loan

edwards97

mcpitman wrote: »

To be clear you borrowed £70k on a property that was worth £42k? Whereas you thought you were borrowing £70k on a property worth 58k?

Alternatively do you already have a 100% mortgage and borrowed the extra 20-60% on a secured loan?

Haven't got the exact figures but about 90k mortgage at time. I valued house at about 135k. They valued at about 98k which I did not know.

edwards97

HappyMJ wrote: »

Surely the house is worth more than £42,000 today and you can remortgage to a better rate. If you've paid £50-60k over 9 years you're paying around £500 per month which is a fairly reasonable amount to pay on £70,000. I imagine fees were added at the outset and to have a balance of £61,000 outstanding is also quite reasonable. My mortgage calculator tells me your interest rate is around the 7% mark which is very good for a 165% LTV mortgage.

Not exact figures. Interest rate is over 11%. Even if there is a little equity it's impossible to get a mortgage as where I need to move is a little more expensive and my ltv has to be 80% to get a decent mortgage.

Pixie5740

Did this lender actually come out and value your property at any time or were you both just plucking numbers out thin air?


You could get a couple of estate agents round on the premise that you want to sell and find out what they value your home at. It might not be as bad as you or this lender think.

edwards97

Pixie5740 wrote: »

Did this lender actually come out and value your property at any time or were you both just plucking numbers out thin air?


You could get a couple of estate agents round on the premise that you want to sell and find out what they value your home at. It might not be as bad as you or this lender think.

They didn't come to my house but they accidently sent me the valuation report on my house earlier this year

Also there is a hand written not on there internal application that a valuation need to be completed before loan agreed. The point still remains that I would never agreed with a 165% LTV secured load had I known. They knew they just didn't tell me.

The other thing I forgot to mention is the maximum loan the could give is 125%

Pixie5740

Maybe it was just a clerical error. Another poster recently was sent the wrong loan settlement figure from their bank so it does happen.


Have you written to the lender to query the valuation report you've been sent and how they arrived at the figure when you said that your property was worth £135k?

edwards97

Pixie5740 wrote: »

Maybe it was just a clerical error. Another poster recently was sent the wrong loan settlement figure from their bank so it does happen.


Have you written to the lender to query the valuation report you've been sent and how they arrived at the figure when you said that your property was worth £135k?

Yes I complained and the final response was that it was within company policy at the time.

HappyMJ

edwards97 wrote: »

Not exact figures. Interest rate is over 11%. Even if there is a little equity it's impossible to get a mortgage as where I need to move is a little more expensive and my ltv has to be 80% to get a decent mortgage.

You should have paid £75,000 over 9 years at that rate of interest.

To get your LTV down to 80% you must save and/or overpay. Paying the monthly mortgage payments requested will not reduce your LTV by much as the majority of the payment you make especially in the early years is just interest.

It looks like you took this loan out as additional borrowings in addition to your existing £90k mortgage if I'm now understanding this. I don't really see what difference the LTV makes. How much is outstanding on the £90k mortgage?

According to my calculator and assuming the £90k was also set at 25 years you will be at 80% LTV some time in year 20 of your 25 year mortgage.

edwards97

HappyMJ wrote: »

You should have paid £75,000 over 9 years at that rate of interest.

To get your LTV down to 80% you must save and/or overpay. Paying the monthly mortgage payments requested will not reduce your LTV by much as the majority of the payment you make especially in the early years is just interest.

It looks like you took this loan out as additional borrowings in addition to your existing £90k mortgage if I'm now understanding this. I don't really see what difference the LTV makes. How much is outstanding on the £90k mortgage?

According to my calculator and assuming the £90k was also set at 25 years you will be at 80% LTV some time in year 20 of your 25 year mortgage.

I appreciate you response maybe my calculations on payments are out. I am fully aware of what i need to do its just I feel I should not of unknowingly have been put in this position.

HappyMJ

edwards97 wrote: »

I appreciate you response maybe my calculations on payments are out. I am fully aware of what i need to do its just I feel I should not of unknowingly have been put in this position.

So what is your house worth? They say it's £98,000 and you say it's £135,000. The valuations are quite different. I wouldn't rely on their figure at all. You are the only one who knows what your is actually worth. If they have an internal note saying it's only £98,000 then is that what it is or is it more.

edwards97

HappyMJ wrote: »

So what is your house worth? They say it's £98,000 and you say it's £135,000. The valuations are quite different. I wouldn't rely on their figure at all. You are the only one who knows what your is actually worth. If they have an internal note saying it's only £98,000 then is that what it is or is it more.

The valuation was done 9 years ago and I have an actual copy of there valuation completed by UK valuations I think. It's not just a note it's an actual formal document. My valuation tbh honest was a guess.