NR Together Prior to 2006

lemonade_lifestyle

Sorry if this post should be elsewhere, please move if required, HOWEVER, is anyone online at the minute that can either PM me or reply to this thread with the possible implications and repercussions of the unsecured eliment of a togther mortgage taken out prior to 2006.

Please help, tried searching but to no avail.

Was completely unaware that there was any problems with this mortgage...:huh:

MortgageMamma

tell me what the problem is...

lemonade_lifestyle

I have read elsewhere on this board that there could be problems with legality of the unsecured portion of the mortgage, and to get into touch with an auditor. With some talk of involving solicitors and compo???? Just wondering what its all about.

silvercar

I read something about loans over 25k possibly being incorrectly written...

petermb_2

It is actually about loans under £25,000, making them regulated under the Consumer Credit Act. Yes there are issues with these loans.

homer_j_3

I have reported that some over 25k had issues. I have had it confirmed that these issues exist but I have issued copies of the paperwork so it could be that not all paperwork is this way.

Do you have a copy of your mortgage offer? If so, look at section 12 and see if it refers to being regulated by the CCA 1974 but not by the FSA. Also have a look at the total amount repayable and try and sense check this against the monthly repayments over the period of the fixed rate and the payments over the variable rate.

lemonade_lifestyle

Ok, I've looked and yes section 12 states not regulated by the fsa but regulated under the CCA 1974. Ok
The unsecured loan in 2005 was for 26250.00. Monthly payment was 182.03 for 3 years at apr of 7%. On seperate loan agreement it states 26250 with an interest rate of 6.70% and an apr 7.0% until fixed period ends. This ended April 1st, now on svr. Period of agreement 300 months??

Can you deciefer??

Plus I did have original mortgage started in 2001 (together) but rejigged march 2005 will this apply to this mortage as well?

Cheers

lemonade_lifestyle

Sorry forgot to say original mortgage was for approx 51000 with probably the maximum unsecured eliment you could have for size of mortgage, so I would say approx £16000 unsecured?? Any help

homer_j_3

If the original unsecured element was under 25k and was taken out in 2005 or before then these have been recognised to have issues so this may have been unenforceable.

With regards to the current product and agreement that you have. Multiply the monthly repayment for the unsecured loan at the prevailing costs for the prevailing periods.

So, 182.03 x 36 = 6553.08
You will then have 264 payments at £X which = Y

Add these all together and see if it roughly matched the "total amount of credit" that it specifies.

lemonade_lifestyle

So----
Original 3 years fixed repayments= 36 x 182.03= 6553.08
New monthly payments= 264 x 185.60 (apr 7.58)= 48998.40

original loan 26250.

can't find anywhere on credit agreement regulated by CCA 1974 the total credit amount for this loan.

One other thing please forgive me for being thick but I must presume that the interest rate and a.p.r are not the same??? Cause it clearly says the interest rate for unsecured borrowing is the same as that charged for the secured mortgage. (originally 6.79)
It then goes on to say the a.p.r for the unsecured borrowing is 7.0%??

Gee whizz I'm confused:huh:

homer_j_3

Do you have a sheet of paper with Pre- Contract Information on?

If not - that is where it will be so you need that.

If you do - then it should be in Other Financial Information on that paper

The APR takes into consideration different things so its normal for APR to be different from the interest rate in this way