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SKYE Loans - Charges and Interest

edited 30 November -1 at 1:00AM in Loans
71 replies 16.6K views
sambo202003sambo202003 Forumite
1 Post
edited 30 November -1 at 1:00AM in Loans
Morning all
We had a secured loan with Black Horse which got switched over to SKYE Loans a few years back. We had little correspondence from either company.
We were not told our monthly payments would change but straight away we had an arrears letter from SKYE stating a charge was due as we hadn't paid enough interest??!
In December we unfortunately missed a payment and had a letter saying there was a £12 charge plus £9 interest. Fair enough. We phoned them and cleared this and paid the outstanding monthly payment.
We have now received another letter asking for more interest relating to this last issue. Again, we phoned them and spoke to a nice chap who went on to tell us a couple of things we were absolutely NOT expecting.
1) He said that we had 25 months left on the loan. However, as the interest rates have gone up recently we will have an extended period of 4 months to pay added interest!
2) He also went on to say that as this is a secured loan, we would need to pay a release fee of £120 at the end.
None of the 2 issues above were ever mentioned to us when we took the loan out initially with BH.
Any advice welcome.



  • DCFC79DCFC79 Forumite
    40.2K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    Is issue number 2 because its secured or the fact a release fee would need to be paid ?

    What does your agreement say about the release fee ?
  • TrickyDicky101TrickyDicky101 Forumite
    3.5K Posts
    Tenth Anniversary 1,000 Posts
    How are you paying the monthly payments? Is it via Standing Order or Direct Debit? I can see no reason (if DD) why you would end up paying for longer if Skye can simply increase the DD to reflect the increased interest chargeable.
  • D_M_ED_M_E Forumite
    3K Posts
    1,000 Posts Fourth Anniversary Name Dropper
    What does your original agreement say about interest charges, and what does it say about the £120 fee?

    Skye cannot arbitrarily add on extra interest if it not allowed for in the original agreement, they must adhere to the original terms which you signed up to.

    Having said that, if the original agreement allowed the interest rate to rise in specified circumstances then extra may be due but you need to carefully read the original terms and conditions of your loan.
  • jimuckmacjimuckmac Forumite
    41 Posts
    Second Anniversary 10 Posts
    Please don't pay this lot another penny. Skye Loans Limited are not regulated by the FCA so do not have the legal authority to administer the loan or collect on it.

    Cheers, Jimuck
  • sim68sim68 Forumite
    1 Post
    Has anyone else had issues with Skye Loans just keep going round in circles. There is no details on them anywhere. If not on Fca register what does that mean. any advice very welcome
  • jimuckmacjimuckmac Forumite
    41 Posts
    Second Anniversary 10 Posts
    Hi there,
    As explained in my previous post, Skye Loans Limited are not registered with the Financial Conduct Authority, which means they are permitted to take ownership of a second charge mortgage but are not legally permitted to administer the loan, they are not permitted to collect on the loan/debt. I'm now in the process of taking this crooks to court to recover payments made to them, I have also reported them to Fraud Line.

    Please get in touch if you need anymore info on this lot
  • jimuckmacjimuckmac Forumite
    41 Posts
    Second Anniversary 10 Posts
    Skye Loans Ltd are not regulated with the Financial Conduct Authority, which means legally they are not permitted to administer the loan or collect on the loan. Don't pay them another penny.
  • AndyR68AndyR68 Forumite
    2 Posts
    Concerning Skye Loans,I also see that they aren!!!8217;t regulated by the FCA,however their letters state that they are !!!8216;serviced!!!8217;by Link Mortgage Services,who are regulated.My particular case is,as others have stated,my original secured loan with Black Horse was sold on to Skye Loans.The original loan amount being £12,500 with a !!!8216;minimum!!!8217; 120 repayments of just under £23,000.I have possibly taken a couple of payment breaks and had the odd missed payment.I agreed to pay monthly top-ups in cases of missed payments.To date we have repaid a total of around £25,000+ since 2007 and Skye are still chasing !!!8216;arrears!!!8217; of around £500 with a balance still owing of around £4,500.Surely this is extortionate and I have a case for appealing this amount?
  • AndyR68AndyR68 Forumite
    2 Posts
    Sorry I don!!!8217;t understand why !!!!8216 & !!!!8217 appears on my above post.It!!!8217;s my first attempt on the forum.
  • edited 30 April 2018 at 1:37PM
    SystemSystem Forumite
    177.9K Posts
    10,000 Posts Name Dropper
    edited 30 April 2018 at 1:37PM
    It's because you're posting on a Mac and the forum software can't cope with the "smart quotes" character codes Apple uses for apostrophes.

    To turn it off go to System Preferences, Keyboard, select the Text tab and on the right hand side untick "Use smart quotes and dashes"
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