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Need advice about Redrow loan they are chasing
bagginsian
Posts: 19 Forumite
in Loans
Does anyone know what my rights are, for a loan secured on my property, in 2007 for £5,700.
The loan was due to be paid back after ten years, and was part of the scheme Redrow were offering. Now they're chasing me for the loan, and asking all kinds of questions about my current situation. I intend to sell the place anyway ,so they'll get their money back. but they are hassling me a lot now, with calls etc.
They are offering for me to 'defer' the outstanding loan for 12 months, subject to them approving it, and me paying £150 'admin fee'...they keep asking affordability questions basically. ive sent a deferment application by email, and jumped through their hoops. they are deciding if they'll let me defer currently.
ive just been researching and I have found that secured loans, are statute barred after 12 years...in June 2018 this would make it the 11th year since I took the secured loan...thoughts? I might need legal advice. Im unsure about whether they can still charge interest, and also if they can charge this admin fee of £150
The loan was due to be paid back after ten years, and was part of the scheme Redrow were offering. Now they're chasing me for the loan, and asking all kinds of questions about my current situation. I intend to sell the place anyway ,so they'll get their money back. but they are hassling me a lot now, with calls etc.
They are offering for me to 'defer' the outstanding loan for 12 months, subject to them approving it, and me paying £150 'admin fee'...they keep asking affordability questions basically. ive sent a deferment application by email, and jumped through their hoops. they are deciding if they'll let me defer currently.
ive just been researching and I have found that secured loans, are statute barred after 12 years...in June 2018 this would make it the 11th year since I took the secured loan...thoughts? I might need legal advice. Im unsure about whether they can still charge interest, and also if they can charge this admin fee of £150
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Apart from the contract, you've acknowledged the loan. So it would be at least another 12 years from now before it became statue barred.
They can charge the interest that is set out in the agreement.
Without seeing the agreement, it's likely to be vastly cheaper for you to repay this sooner rather than later.0 -
when you say acknowledged the loan, do you mean by sending the email? I thought that too....I'm not saying I don't intend to not pay but im in financial hardship and its good to know my rights.0
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If you can't afford to settle, then accepting a deferment option would be the only way forward.
Co-operate with them though - you don't want to come across as some scumbag who is trying to get out of paying them, especially if this is a secured loan, or they will come down heavy on getting their money back.0 -
Deleted_User wrote: »If you can't afford to settle, then accepting a deferment option would be the only way forward.
Co-operate with them though - you don't want to come across as some scumbag who is trying to get out of paying them, especially if this is a secured loan, or they will come down heavy on getting their money back.
I have been co operative, i'm certainly not 'some scumbag', thats a bit of a leap....
my property in question is up for sale in any case, they'd get the money legally when its sold. I just question the legality of them charging such an expensive admin fee, £150, and also being able to charge the interest that they are.0 -
bagginsian wrote: »I just question the legality of them charging such an expensive admin fee, £150, and also being able to charge the interest that they are.
Have a look in your agreement. That will detail the interest and charges.0 -
It!!!8217;s not clear why you aren!!!8217;t just going to pay it back as agreed. What is the issue?bagginsian wrote: »Does anyone know what my rights are, for a loan secured on my property, in 2007 for £5,700.
The loan was due to be paid back after ten years, and was part of the scheme Redrow were offering. Now they're chasing me for the loan, and asking all kinds of questions about my current situation. I intend to sell the place anyway ,so they'll get their money back. but they are hassling me a lot now, with calls etc.
They are offering for me to 'defer' the outstanding loan for 12 months, subject to them approving it, and me paying £150 'admin fee'...they keep asking affordability questions basically. ive sent a deferment application by email, and jumped through their hoops. they are deciding if they'll let me defer currently.
ive just been researching and I have found that secured loans, are statute barred after 12 years...in June 2018 this would make it the 11th year since I took the secured loan...thoughts? I might need legal advice. Im unsure about whether they can still charge interest, and also if they can charge this admin fee of £150
Edited to add, it!!!8217;d be nice if you could let people know what the outcome is this time, unlike when people helped you when you defaulted on your car finance. Others in the same situation search the forum, and it!!!8217;s good to let them know how things turn out.0 -
Check your deeds. It's a second charge secured on your property. The interest charges are all laid out too. Something like 4% above Barclays base rate. Have you looked to remortgage to pay off?0
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It!!!8217;s not clear why you aren!!!8217;t just going to pay it back as agreed. What is the issue?
Edited to add, it!!!8217;d be nice if you could let people know what the outcome is this time, unlike when people helped you when you defaulted on your car finance. Others in the same situation search the forum, and it!!!8217;s good to let them know how things turn out.
The loan is an equity loan that lowered the price of the property when I bought it. It’s tied up in the property.
The problem was, the value of the house plummeted in 2008 and all my equity got swallowed up. Currently I haven’t got the lump sum to repay it, that’s what they are demanding. I’m selling the place anyway, so when that goes through, they’ll get it back automatically through the deeds.
Not sure why you’ve been looking through my old posts, but I’ll keep this one updated.0 -
Check your deeds. It's a second charge secured on your property. The interest charges are all laid out too. Something like 4% above Barclays base rate. Have you looked to remortgage to pay off?
Thanks, I need to dig out the deeds yes to check what they say about it,
It’s a very stressful situation. An equity loan that got wiped out when the price of my property crashed...now I’m paying the price!0 -
Like others, I look through old posts as it can give some context to give a better reply.bagginsian wrote: »The loan is an equity loan that lowered the price of the property when I bought it. It’s tied up in the property.
The problem was, the value of the house plummeted in 2008 and all my equity got swallowed up. Currently I haven’t got the lump sum to repay it, that’s what they are demanding. I’m selling the place anyway, so when that goes through, they’ll get it back automatically through the deeds.
Not sure why you’ve been looking through my old posts, but I’ll keep this one updated.
How did the equity loan have any effect on the price of the property?0
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