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Getting out of loan agreement?

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Jpop_2
Jpop_2 Posts: 11 Forumite
Hello,

I am trying to get my debts in order and think i am am going about it the wrong way....

I owe a total of £14.000 in debts in bank loans and credit cards, i can manage it but i would like to get it all sorted out in one payment.

I have bought my parents council house....the morgage is £30.000 and the house is worth about £130.000...i am paying £340+ a month for 10 years to buy the house.

I wasn,t really thinking....i applied for a personal bank loan from Moneyback Bank for £15.000 to pay off my debts at £400 a month and it was accepted.

I am now thinking i should have asked the bank for the money and stuck it on the morgage over 15 years....the payments probably would be much the same as what i am paying now.

Moneyback Bank is sending out papers for me to sign an agreement and direct debit before the loan is payed into my account.

I can still cancel this agreement can't i?

if i dont sign the papers there will be no aggreement will there?

Sorry for all the questions....i have not had to deal with this kind of stuff before.

Cheers!

Comments

  • nomoneytoday
    nomoneytoday Posts: 4,871 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    AFAIK you can cancel a regulated agreement up to 2 weeks after getting the funds.
  • homer_j_3
    homer_j_3 Posts: 3,266 Forumite
    AFAIK also, you are not allowed to borrow on the right to buy scheme for council houses for this purpose so check this out before you evoke the above.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Jpop_2
    Jpop_2 Posts: 11 Forumite
    Thanks for the replies!

    homer_j, i dont understand what you are saying....

    "you are not allowed to borrow on the right to buy scheme for council houses"

    What do you mean?

    Cheers.
  • homer_j_3
    homer_j_3 Posts: 3,266 Forumite
    Sorry, its one of those statements that read right to me but clearly hasnt to you.

    The right to buy scheme allows you to buy your house at a discount. The benefit of that discount can bring a few restrictions. One of which with the councils that I have dealt with is that they are not keen for people to use their equity to debt consolidate so if you are in your pre-emption period, you will need to check whether this can be done before you canel your loans etc.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Jpop_2
    Jpop_2 Posts: 11 Forumite
    Thanks for clearing that up:T
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