Elderbridge - Urgent help for vulnerable person

deanloco72

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[Deleted User]

Mortgages are typically taken over long periods, so you would only expect it to be paid off by now if she took a term that enabled her to do so. But looking at the payments, that's not what happened. A long term and high interest makes for an expensive loan.

The interest charged is the interest charged on the capital - it's not PPI.

She's also in arrears, which makes things worse.  Essentially, she needs to start paying much more towards the account. Firstly to clear the arrears, and then to make headway into the debt.

However, her first step needs to establish exactly what the mortgage was for and in whose name it is.

Brie

There's nothing to indicate that PPI is involved.  I suspect it is simply an excrutiatingly high interest rate if she has paid nearly £40k and only cleared £8k of debt.   

It's a bit of a long shot but the Elderbridge website I found refers to Firstplus mortgages/loans.  I believe they were/are part of Barclays so you might want to enquire there if Elderbridge aren't forthcoming.

http://www.elderbridge.co.uk/pages/complaints.html

[Deleted User]

Yes, high interest rates are the norm in higher risk borrowing, so no issue there. 

Grumpelstiltskin

When did this mortgage start?
When did her husband die?
Did he leave a will?
How was the house owned Tenants in Common or Joint Tenants?
How was it a joint account if she had no knowledge of it, did he forge her signature on the application?

You need to do some more research into the background of this,

Brie

Pay day loans used to advertise interest rates up to 5,000%.  Not allowed now of course.

But there's still plenty of credit cards with rates of 49% which would mean a loan of £40k would have about £20k in interest added per year.  

If your nan has been paying £500 a month in interest that's £6k a year interest which at a guess would put the APR under 20%.

Grumpelstiltskin

Edit.            What happened to the £44.000? Surely she must have had some idea of what he did with the money?

y3sitsm3

Brie said:

Pay day loans used to advertise interest rates up to 5,000%.  Not allowed now of course.

But there's still plenty of credit cards with rates of 49% which would mean a loan of £40k would have about £20k in interest added per year.  

If your nan has been paying £500 a month in interest that's £6k a year interest which at a guess would put the APR under 20%.

No, but to be clear there is no cap on how much interest can be charged by lenders as a whole. Only short-term lending had a cap placed on it. In theory, a personal loan going for over a year could still charge 5000% APR.

Shakin_Steve

Brie said:

There's nothing to indicate that PPI is involved.  I suspect it is simply an excrutiatingly high interest rate if she has paid nearly £40k and only cleared £8k of debt.   

It's a bit of a long shot but the Elderbridge website I found refers to Firstplus mortgages/loans.  I believe they were/are part of Barclays so you might want to enquire there if Elderbridge aren't forthcoming.

http://www.elderbridge.co.uk/pages/complaints.html

According to the reply from Elderbridge in this post loans pre 2008 and over £25K are unregulated.

https://forums.moneysavingexpert.com/discussion/6298153/first-plus-loan-now-elderbridge#latest

Grumpelstiltskin

Right answer my first 2 questions.
When was it taken out?
When did he die?

Brie

First thing to do I think is to send in a simple SAR request.  You may need to provide her husband (your grandfather?)'s death certificate.  They should provide every thing that has either his or her name on it.  From that you should be able to sort out what has happened and why.

I'm wondering if she never knew about it whether it was something she needed to be paying.  Perhaps they owe her a refund of everything paid since his death??  I'm guessing and being very optimistic.

I'm also wondering why they haven't contacted her about this if she knew nothing about it.