Stuck in a vicious circle (please help urgent

becksie1987

Hi, im new to this site and i hope someone can help me urgently...

see, my partner got a loan with the HSBC a few years ago and the bank have been charging for late payments and missed payments, even though he was paying them through the credit counceling service. they have recently taken him to court for non payment and have decided to put a charge on his house.he has applied for a loan with another company as we have just had a new baby and as you can guess money is very tight, anyway the company have said that he can have a loan but they will have to pay the HSBC 1st witch is fine but i need to know. we need to know which one is the best thing to do,if we arrange a one off payment of the loan with the HSBC (minus the charges) or we pay the HSBC the full amount which stands at more than double the original loan amount due to the bank charges, and the apply for the bank charges back again as we have wrote to them before about the charges... please help me!!

petermb_2

how long have you had the loan?

becksie1987

He has had the loan at least a couple of years

petermb_2

difficult one to call. I would be tempted to recover the charges after the event. There are quite a few issues involved here. If the lender now has a ccj and a charge, both these items will be overstated. That will be an interesting problem for them to deal with after.

becksie1987

So if he goes with this loan and pays them the full amount and then asks for the charges back once all has settled down abit?

CLAPTON

what are the conditions of the new loan ..like what is the APR, how much the monthly repayments and for how long.
if he can't afford to pay back HSBC how will be manage to pay back the new loan ... is it secured on the house?

becksie1987

Yeah, the new loan will be secured on the house the HSBC one wasnt to begin with. He took out the last loan when he was on his own but he has me so i can help out and once the HSBC has been paid off then he will be on the straight and narrow. i think the apr is 15%

CLAPTON

-can you afford to pay the new loan off... if you default on that you will lose the house.
-is the loan fixed or variable rate
-who is it with
-have you taken out PPI
-can it be overpaid
-what are the early settlement costs?

for a secured loan 15% is a very high rate.