Nemo 2nd mortgage advice

Hi 13 years ago i took out a loan which has now become a 2nd mortgage apparently, although inittialy i understood it was just secured on my property.

The loan was done by the same person who set up our mortgage in our home and was an independant financial advisor who has since been struck off as a professional. It was arrange through a seperate comany called "******* finace limited" and the final loan was facilitated by Nemo personal finance.

The full amount borrowed was £31,700 the monthly payments where originally £322 (now reduced for some reason i cant remember randomly a few years back to £282) and was over a period of 300 months. The total repayment would be circa £96,600.

I have recently fallen in to arrears separated and i'm struggling to pay it as now currently paying £100 a week.

There seems to be lots of strage issues with this loan, for example, i contacted the original finance company to enquire about getting some documents sent over, however they seem to have no details about myself, my wife, the advisor or the loan whatsoever. Nemo have sent me original documents with figures that vary between them and a rather dodgy copy of an original letter i had from the fanancial advisor  signed by myself and my former spouse on headed notepaper from the originating finance company, however this has no reference numbers or anything relating to the loan as a reference.

I have contacted nemo and they are very nice but extremely unhelpful and are really pushing to get the arrears paid telling me my house could have a compulsory sale order put on it (I have children at home with me under 18) i have also been told that the loan intresr rate was so high, (10.428%) as we where high risk customers (average rate at the time was circa 5%) which meant they could recover thier money quicker in case we didnt pay or fell in to problems later.

So having now paid back over £50,000 for this loan, i am asking if i have any legal grounds to help me get out of this loan, currently its really causing me finacial distress, my mortgage payments have increased x 3 overnight and i'm in arrears but on arrangement and coping. I have offered an extra £120 a month to help clear the arrears on this loan, however they are telling me its not enough because it will take 5 years to clear, despite me still having 12 years of repayments left on it.

I honestly do not know where to turn or who to talk to, nemo keep telling me i cant go to the Financial ombudsmen because i enquired about all this over 18 months ago, they logged it as an official complaint which meant, its now gone passed a reasonable time for response so cannot be made to the FO. 

Please can anyone help? Or at least point me in the direction of someone whos not going to try and charge me an arm and a leg and make my situation worse and not acheive anything?

Thank you


  • You need to clarify these document that you've seen and what they say.

    Essentially, everything will be above board - you borrowed money under terms which you agreed to. The rate was your risk. You have missed payments, so are in arrears and need to catch up.

    There won't be anything that lets you walk away from the debt - so you need to look at your options for clearing it or refinancing.  Another option is to sell the house, but that comes with other challenges.
  • Edi81
    Edi81 Posts: 1,427
    First Anniversary First Post Name Dropper Combo Breaker
    Anything secured on your home is technically a mortgage. 
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