Secured Loan - Excess Funds?

ByzantineByron

Hi all, hopefully an easy question.

My wife and I are completing on a secured loan (£46,000). We are aware of the issues with a secured loan but it's very much last resort for us and will cut our expenditure on debt from about £1,300 a month to £380 a month. We need to free up the money as our little one has to go to nursery 3 days a week in order for my wife to keep her job.

We plan on overpaying £100 a month to ensure we knock £5,000 off the balance when we re-mortgage and will save us massive amounts of interest in the long term. We're also plan on getting rid of our credit cards (but keeping one with a small limit for emergencies) and have made some lifestyle changes to tackle the root cause of the debt. Of course, I'm not looking to justify per se, just heading off the inevitable (and fair!) warnings about these loans.

The question is regarding what happens with excess funds. The loan will complete in the next few days, but on Friday we are set to have a number of payments go out, meaning there is likely to be an excess of around £1,000.

The question is, who do we get those funds from? The lender? Or do they just overpay and I need to claim from the creditor (Halifax for example)?

Our intention is to just chuck the excess funds back at the loan as an overpayment if that helps.

Thanks!

[Deleted User]

Is your mortgage lender supplying the loan - where do the Halifax come into it - sorry to sound dense.

ByzantineByron

Sorry for the confusion there!

The lender is Oplo.

Halifax is an example of one of the creditors I have (credit card)

So for example;

If the Halifax balance is £1,000 and Oplo state they will pay that amount to them on the 29th. But on the 27th a standard payment is made, so the balance is actually £950, what happens to the excess £50?

Does it show up as credit with Halifax that I claim from them? Or do I contact Oplo and ask them to put that as an overpayment on the loan?

mcpitman

I don't see that anyone but Oplo can answer that as it will be down to technicalities with their processes and dates of payments etc.

In your scenario above I expect Halifax would "keep" the extra £50 and ask you what you want doing with it.

Last question, is part of the deal that Oplo pay all these or do you just get £46k in the bank to deal with yourselves?

ByzantineByron

So Oplo try to settle as many direct as possible, but a few companies won't accept 3rd party payments and in those cases, the money is paid directly to me for me to settle with these companies.