Thought secure loan was paid and now being asked to get a solicitor involved.

Kameraden

Hi


I live in Scotland and stupidly I know myself and my wife took out a secured loan on our home about 10 years ago. We have never missed a mortgage or loan payment in all that time. A few weeks ago I decided as we were within the final year i'd clear it off as due to an small windfall I was in a position to do so.


My thinking was i'd rather get this monkey off our back at last and also avoid paying the interest every month and potential rate fluctuations. So I cleared it off over the phone after I was sent a redemption statement.


Today about 2 weeks later I have received a letter that states as there were no solicitors involved they want a solicitor to provide them with discharge documentation. Or they can do it for £132.


Now If we have to do this, then we have to do this. However I am not very happy as in that final call to the lender it was made clear that I was closing the account and paying the whole thing. No mention was made of discharge paperwork or further requirements. At the end of the call the staff member stated she would get a letter of confirmation sent out that they had no further claim/interest in the property.


I can't remember much about the original loan the be fair as 10 years ago. However I believe we just went into an office and signed paperwork. There was no solicitor involved then I am sure.
To me it just seems another way to try and squeeze more money from us. I'm pretty disgusted as they've probably had over 3 times from us as much as we borrowed.


Anyway do I have any other choice apart from to do this? Also bearing in mind no mention was made of this, when they took the payment from us to close the account in good faith.


Thanks

[Deleted User]

Kameraden wrote: »

To me it just seems another way to try and squeeze more money from us. I'm pretty disgusted as they've probably had over 3 times from us as much as we borrowed.

That's unlikely. It will either be in your terms and conditions or it will be an error.

The repayment schedule and APR won't have any bearing on whether it is in the contract or not.

If you don't have a copy of your agreement, ask them for a copy.

jonesMUFCforever

This is normal to take the security\charge off your property at the Land Registry.
You could tell them not to do that until such time as you want to sell but IMO you don't want to do that do you?
A bit of a shock I know but debt free afterwards.

whambar

I had a firstplus secured loan that was sold to elderbridge, when I phoned to pay this off the redemption had a modest fee to cover the admin in updating the land registry to remove the 2nd charge they had on my property, mind when I checked a few weeks later I had to chase them but I did ask their legal department to confirm when they had done so, and a week later they was good to word and my report from land registry showed it as gone and my credit file as satisfied and paid off. Can!!!8217;t rememebr exact cost but certainly not £132. But regardless it was less than a months interest and I was rid of it for good so felt marginally more free lol

Pixie5740

This is normal and you will probably find there is a similar fee when you eventually pay off your mortgage.

molerat

Standard in Scotland.

normanna

The call handler probably had no clue about the charge and was merely following the script to forward you request to the closures team. I can appreciate your feelings but looks like the charge is standard and is due to be paid. Just view it as a means to get free of the debt and let the resentment go - you'll be happier for it.