Secured Loan

Ebe_Scrooge

edwards97 wrote: »

Actually this is an incorrect assumption. It said the loan amount at x interest on 120% ltv.

Yes, but you've still not answered the question. Was the interest rate less favourable due to the higher LTV ? If yes then you may have a case. If no then you have no claim.

puk999

Can you find out what the interest rate difference on LTV 120% and LTV 165% would've been in 2005?

edwards97

Ebe_Scrooge wrote: »

Yes, but you've still not answered the question. Was the interest rate less favourable due to the higher LTV ? If yes then you may have a case. If no then you have no claim.

Well they stated 120% ltv so the loan would have been based on that. I think you don't really get why I'm unhappy. Maybe I haven't explained myself very well. It's just the fact that I would have not exposed myself to 165% if I had known about it. I except what I borrowed and in no way am I trying to get out of paying it all back. I have never missed a payment and will continue to do so. I just think they should have not advised me 120% if it was 165%.

edwards97

puk999 wrote: »

Can you find out what the interest rate difference on LTV 120% and LTV 165% would've been in 2005?

The maximum they were allowed to lend was up to 125% ltv as per all their ads said and company leaflets. Therefore there is no detail to look at.

Ebe_Scrooge

edwards97 wrote: »

The maximum they were allowed to lend was up to 125% ltv

... and yet they lent you 165% ??

edwards97

Ebe_Scrooge wrote: »

... and yet they lent you 165% ??

Correct. Loan in 2005. Only this year I found out.

27col

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.

A house is worth what someone is prepared to pay for it. Nothing more, nothing less. I would have thought that, what you think it is worth, only affects the price you would like to get. What it's worth is governed by what the buyer thinks it is worth to them. Not by the figure that you have put it on sale for.

Gaz83

Maybe I'm missing something, but you said in your original post that they based the loan on the valuation you gave them. Surely if you gave them the valuation, you would have noticed that the loan quoted was the 165% rather than 120%?

edwards97

Gaz83 wrote: »

Maybe I'm missing something, but you said in your original post that they based the loan on the valuation you gave them. Surely if you gave them the valuation, you would have noticed that the loan quoted was the 165% rather than 120%?

Yes you are. They gave me 120% on my guessed valuation not on the actual value of my house when they valued it. So when I work out what I was lent on there actual valuation it worked out to be 165% because the actual value of my house was considerably less.

EvonneW

So, if I've got this right, one way or the other you borrowed £162k (165% of 98k or 120% of 135k)? Is this broken down on your mortgage statement into two amounts, ie mortgage and further advance/secure loan?


If you bought the house from a seller, how much did you actually pay the seller for the house? £98k or 135k? or some other amount?


If you owned the house outright, did you ask for a £162k loan based on your own £135k valuation?


£162k at 11% on a 25 year mortgage is about £1,500/month. You should currently owe about £143k after 9 years, if that is the case (according to the hsbc calculator, anyway).


If the secured loan part is ca 64k (162k total loan - 98k lower value) then the payments for that, at 11% for 25 years) would be £626/mo. Is that what you meant when you said you had paid ~70k for the loan over the last 9 years? (626x12x9=67608). In which case the outstanding balance would be approx. £57k.



A 98k loan at 11% over 25 years would have about 86.5k left on it after 9 years.


Is this the case?