loan until i sell property

jamesd

Companies aren't equally trustworthy when it comes to providing good descriptions of the deals they offer.

Can you instead remove your financial difficulties temporarily by switching any existing mortgage to interest only or taking a repayment holiday?

The NatWest deal looks eminently reasonable for a secured loan in your apparent situation, assuming that there are no significant other charges, like arrangement fees. Two months is the standard cost for early settlement of a consumer loan originally intended to last more than a year: 28 days for settlement amount notice period plus one month of extra interest. Of the options you've given so far, this is the one I suggest you choose.

jonesMUFCforever

dani33 wrote: »

i am currently in financial difficulty until i sell my property, i f i get a loan and several months before the loan amount has been used i still have not sold my property i will rent my property and move in with my parents, this is a worse case scenario. also if i couldnt sell or rent in this period (very worst scenario) i would have enough disposable income to cover this secure debt just about

You say you would have enough disposable income just about to cover the secured loan but what about the mortgage?

If you have enough disposable income why not use it to snowball your other debts and save on the costs of setting up a secured loan which is going to be for a short timescale anyway!

bankofmum_2

I took out a secured loan in order to sort out credit until I sold my house.
I took a loan with Barclays who have charged just two months credit for early repayment. It helped a great deal as it reduced my payments in the short term.

They didn't ask if my house was up for sale but they wouldn't have known anyway.

Warning - do not take the PPI as this ends up as a loan on top of your loan and you get charged the whole amount which is about £6,000 when you pay off the loan. If you have already taken it then cancel it before you ask for a settlement figure. You will only get a bit back but its better than nothing.

dani33

dani33 wrote: »

i have spoken to central capital who have quoted me a loan of 14,500 at 11.5 % for 20 years, seems expensive compared to others i have looked at on money supermarket, considering i have a good credit score.
Firstplus who quoted 6.2% on their advert wouldnt lend to me as my income is under 20k.
I am not very clear on the early repayment charge, whiich on the form states if loan is settled within 5 years i would pay £943.53 for every 1000 borrowed. obviously i would have made 5 years repayments on top.what would i pay if i settled in a years time? if someone can break down the early repayment figures and how they are arrived at i would be grateful, as on my understanding loans of under 25k could only be subject to 2 months interest, have i misunderstood this ?

I have just got back in touch with central capital to query the early settlement figure and the man at the other end said he didnt understand why this huge charge would be on the form, his understanding was 2 months would be a max penalty for any loan under 25k due to the regulations as i understood.(the original person i spoke to wasnt there) but he said she would call me back tomorrow.

as i understand central capital are just the brokers for many companies, but it seems very odd that these people dont understand fully the charges involved, or perhaps a mistake has been made.

jonesMUFCforever

dani33 wrote: »

I have just got back in touch with central capital to query the early settlement figure and the man at the other end said he didnt understand why this huge charge would be on the form, his understanding was 2 months would be a max penalty for any loan under 25k due to the regulations as i understood.(the original person i spoke to wasnt there) but he said she would call me back tomorrow.

as i understand central capital are just the brokers for many companies, but it seems very odd that these people dont understand fully the charges involved, or perhaps a mistake has been made.

The biggest mistake of your life will be getting involved with a loan through these so called brokers!

I urge you not to proceed until you have had independent legal advice.

dani33

i will, but it will be interesting to hear what she has to say tomorrow! i think it is scandalous for these companies to be in operation if the loan has been so misrepresented.

dani33

ejones999 wrote: »

I also think you are confusing unsecured loans with secured ones.
You are right that an unsecured personal loan can only charge a maximum of 2 months interest as penalty for early settlement.
There is no such limit for secured loans.

i have found this information:Lending institutions offer you the option of taking a secured loan via their branch network, over the telephone, via a written application or online through their website. Initial assessment of your application can be made quickly, however loans under £25,000 are regulated, and a 7 day consideration period will be given to allow time for you to assess the implications of the credit agreement, and to ensure that you are fully aware of all the terms and conditions.

dani33

also the report goes on to say
A secured home-owner loan is subject to The Consumer Credit Act 1974. The Act contains strict regulations about how money is lent and covers loans up to a value of £25,000. Loans for sums greater than £25,000 are unregulated. When taking out a secured loan you will be asked to sign a credit agreement, which should be read carefully as the terms are binding. For regulated loans of under £25,000 the lender must provide a consideration period of 7 days.

dani33

the company central capital are also a member of the fisa>

They will not give me a breakdown of early repayment charges as they say that they are legally not allowed to as they are acting as the broker> what i really need to know is if i borrow this amount what would my repayments be if i pay early within a year for example

jonesMUFCforever

dani33 wrote: »

the company central capital are also a member of the fisa>

They will not give me a breakdown of early repayment charges as they say that they are legally not allowed to as they are acting as the broker> what i really need to know is if i borrow this amount what would my repayments be if i pay early within a year for example

Broker or not - I would not touch them with a bargepole.
You have asked a basic question (a very important question) and they tell you that they cannot answer it.

Ditch them now before it is too late.