GE Money Lending

GuyFernando

Good evening, just after a bit of advice really.

My parents took out a loan with GE money lending. (Now taken over by shawbrook). They got a loan of 25k over 25 years, they are now 12 years into the loan and have paid 57k. Interest to date is 49k which means tjey Have only cleared 7k off of the loan! Now the latest statement says that it’s actually a mortgage and not a loan.

Can anyone advise whether this is completely above board or has anyone ever had any dealings with these companies in the past? Any help or advice would be greatly appreciated, thanks

[Deleted User]

The first thing to check is have the lenders got a charge on the home? this would confirm if it was a mortgage/secured loan.
Depending on the APR a 25k loan over 25 years is always going to be expensive and involve a lot of interest until the capital starts to be paid off.
Does the loan/mortgage allow overpayments? that would be the easiest way to get it paid off.

TrickyDicky101

Was the loan (a mortgage is simply the security over a property taken when the company advances the loan to the customer) a fixed rate of interest for the entire duration of the loan (ie for the full 25 years) orwas it variable? What was the rate?

As venison says, if possible, overpayments are the way to go.

Samsung_Note2

We took out a loan with them in 2007 ish and the sales guy was very very good at showing us figures we could borrow and then this is what you pay but pay this and the % rate is slashed and do this and we can wipe off this and if a full moon and you do ect then we can do ect.

In simple terms it was a complete bloody rip off and confused the hell out of us...only after we realised they were a company to avoid.

Years_of_debt

Your parents needs to ask for an immediate settlement figure. And release equity and pay it off. They are quite literally just chucking there money down the pan.

MEM62

Years_of_debt wrote: »

Your parents needs to ask for an immediate settlement figure. And release equity and pay it off. They are quite literally just chucking there money down the pan.

Equity release are, in most cases, awful products and probably just as bad as the OP's current arrangement. There are very few sets of circumstances where this is a good option.