Secured Loan just doesn't seem to be getting paid off!

Fedup86

DrEskimo said:

It should have been made very clear that the loan was only paying the interest and that you would be responsible for repaying the original capital at the end of the term.

I would start looking into your options for getting an unsecured loan to settle this. Not sure whether borrowing against your home through remortgaging would be a good idea...but I guess the loan is secured already....
What is your mortgage situation?

Already tried my mortgage provider, they said they cannot help as I have less than a year left on the loan. My mortgage itself ends in 6 years. 

MinuteNoodles

Depending on how much you earn as a household it may be possible to save a big chunk of it up if you live like a skint student for a year, cut out everything and rice and beans, beans and rice.

[Deleted User]

Something doesn't add up. If the loan were interest only then the remaining debt should be equal to the original debt at the end of the term i.e. 20k not 17k.

Petriix

I can't accept the idea that your mortgage provider would refuse on the basis of the length of the loan, unless they didn't understand that it was interest only. In any case, there are many other lenders out there.

If you're 47 then you have plenty of time before you retire. Why not remortgage for a 15 year term and roll the loan amount into your mortgage? Speak to a broker and find out what your options are.

DrEskimo

nerox said:

Something doesn't add up. If the loan were interest only then the remaining debt should be equal to the original debt at the end of the term i.e. 20k not 17k.

I did wonder this too....

Fedup86 said:

DrEskimo said:

It should have been made very clear that the loan was only paying the interest and that you would be responsible for repaying the original capital at the end of the term.

I would start looking into your options for getting an unsecured loan to settle this. Not sure whether borrowing against your home through remortgaging would be a good idea...but I guess the loan is secured already....
What is your mortgage situation?

Already tried my mortgage provider, they said they cannot help as I have less than a year left on the loan. My mortgage itself ends in 6 years. 

I don't understand this? Do you mean you can't remortgage yet as you are tied into a mortgage product for another year? Or do you mean they won't accept consolidating the secured loan because that has less than a year left? I'm not sure I understand why the remaining term is an issue?

Do you have any equity in your home/can you borrow £17k extra on your home given your income?

foxy-stoat

Fedup86 said:

My mortgage itself ends in 6 years. 

I do hope that you read the mortgage agreement and its not an interest only mortgage with no repayment vehicle....or you will be homeless but in 6 years.

Clive_Woody

How much per month have you been paying towards this loan?