Secures loan outstanding balance

wilt44

Hi,

I have 3 monthly payments on my secured loan left to make. At the end of the term I will have a balance of around £1500. I have had no correspondence from the lender as what to do at the end of the loan term. What will I have to do?

[Deleted User]

Just pay it off. They will then confirm their disinterest in the property.

wilt44

I don't currently have the means to pay it off. What would be my choices ?

[Deleted User]

Talk to them.

You'll need to either find the funds, make an arrangement to pay or default.

wilt44

Can I ask them for a breakdown with regards to why the balance has not been cleared. I have fell behind with payments as time throughout the loan period but have always repaid and got back up to date.

[Deleted User]

It will be the fees and accrued interest for the time you were behind with your payments.

But yes, you can write and ask them.

wilt44

OK I have rang my loan company today with regards to the balance that will be left at the end of the term of the loan. It equates to 10% of the loan that was initially taken out. I have asked for some information with regards to where the amount left has come from. They have said it will be for interest when I was in arrears. It seems a little excessive to me. When I ask for a breakdown they have said it will be £35 for a lifetime statement. Do I have any rights to get this with no charge?

[Deleted User]

No. You could do a SAR for £10, but it won't necessarily be in a customer friendly format.

PeacefulWaters

How big was the original loan?

What rate?

What term?

What payment?

How many payments did you miss?

wilt44

Original loan for £15000. I think rate was 14%. Term was 12 years and payments were £250 per month. To be honest I am not sure of payments missed but have all been paid back plus any charges.

Gaz83

wilt44 wrote: »

Original loan for £15000. I think rate was 14%. Term was 12 years and payments were £250 per month. To be honest I am not sure of payments missed but have all been paid back plus any charges.

Missing payments on any loan means that the loan balance doesn't go down, so the interest applied that month will be higher. Even when you pay any charges.