Help Blemain Finance

suzzzz_2

Back in 2006 me and my partner took out a loan with Blemain to start our own bussiness they were highly recommended by a broker please dont judge i already know we made the biggest mistake of our lives and will regret this for ever they came and assesd our home as security and imediatly agreed to lend us 44,000 inculuding there fees and broker fee the total come to just over 48,0000 cut a long story short 9 years later i asked for a redemtion figure to settle the account i am yet to recieve this but my latest statment says redemtiom figure is a staguring 54,000 we have already paid 53,000 into the account i qustioned why my loan is not decreasing once back in 2013 and recieved a refund of 1,169.00 back as unfair charges . i again complained last month for the same reason and was sent back an explanation saying charges accured on the account in 2007 when we were in extreme difficulty in reaching our monthly payments all those charges have been added on to the total loan amount in the regon of around 4000 and have been since accuring interest im at my wits end i was told on the phone when i took the loan out it was unregulated therefore they were not obliged to tell me me charges have been added and will incure interest and that the 480 a month payment will not even cover interest so my account has slowly risen and not decreased i feel sick to think they want 54,000 as settlement so if i did pay that i would have paid blemain 107,000 for a loan of 48,000
apr charged was as follows2006 9.10% july 2007 9.60% august 2007 11.60 and its been that rate up until now

to sum up
loan amout 48,297.00
9 years payment made = 53,000 to date (roughly)
redemtion figure from last statement 54,000

sorry this is so long any advise will be highly appreciated
x

Caz3121

how long was the original loan taken for? 25 years?

suzzzz_2

yes it was on a 25 year due to end 2031 in think

CHR15

What did you think you were going to repay when you signed for it (ignoring the "Variable Rate" which means it is going to increase)?

Even if it had remained at 9.1% over 15yrs AND you made the correct repayments, you would have still repaid over £88k.
A longer term, missed/reduced repayments or an increase in interest rate and that figure rockets.

CHR15

EDIT due to new info....

£48,297 over 25 years at 9.1% gives a total repayable of £122,585.73.

Adding on the increases of interest rate and missed payment charges, you seem to be getting off lightly (due to early settlement).

If you were to draw a line now and consider £54k outstanding to be paid for another 11years at 11.6%, you will be paying another £95.8k by the time it finishes in 2031.

suzzzz_2

yes but we are not going the full 25 years why would i look at it like that we wanted to pay of the remainder after 9 years so if we go with their figures we will be paying 107,000 to them for a 48,000 loan i really dont think thats getting of lightly ! i personaly thought this amount was redicilus had no charges been added back in 2007 we would have been at 42,000 as of this month according to their figures
surely settling early should not mean youstill pay the same as if you kept the full 25 years

BrassicWoman

suzzzz wrote: »

surely settling early should not mean youstill pay the same as if you kept the full 25 years

Only if you hadn't defaulted; you need to keep to your side of the terms for them to keep to theirs!

suzzzz_2

we didnt know any charges had been applied up until 2013

BrassicWoman

were they not ending you an annual statement, any chaser letters, nothing at all?

you did know you hadn't been paying?

Gaz83

You need proper legal advice on this, OP.

This is a secured loan. You can (and, from what you're saying, most probably will) lose your home.

BrassicWoman

about ten years at about 10% with some defaults would mean you had paid back about the original loan amount in interest and not much else.

Sounds right to me on basic maths.... I am not sure what your issue is?