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High interst rate on arrears for secured loan

edited 30 November -1 at 1:00AM in Loans
20 replies 1.1K views
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  • foxy-stoatfoxy-stoat Forumite
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    If you cant re-finance the loan with a cheaper rate then look to sell your house and move into a cheaper one - or you will have this round your neck for a long time, as your ex clearly isn't making any effort to help.

    What was the £30,000 for, just out interest?
  • MEM62MEM62 Forumite
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    Yep I sure did. 5 days after giving birth to my second to try and save my marriage. But I didn't sign upto my ex walking out and shirking his responsibities and leaving me with 2 dependents and a massive loan.
    zx81 wrote: »
    I don't doubt you.

    But unfortunately the loan agreement doesn't make allowances for domestic changes. It's based only on capital, rate and term.

    zx81 is right. They are separate subjects although I appreciate that your circumstances were and are difficult.

    What happened to the money that was borrowed and what steps have you taken in respect of chasing your Ex in respect of honouring his financial commitments? Was there are financial settlement as part of your divorce?
  • He used to own our own restaurant. Unknown to me he had used the profits from the restaurant to feed his gambling habit and therefore owed suppliers rent etc. I was just about to give birth and our marriage was in serious trouble so to try and save it we took out this loan to keep the restaurant going. He still did a runner anyway leaving me with it. I had my own job and was on MAT leave so started to fall behind with payments
  • I used the money to pay off debts . Yes I have chased him but he has never disclosed his address and have moved house and job several times. He also lives in Scotland so hard to actually find out his whereabouts without paying someone.
  • Because he is constantly changing jobs and house and lives in Scotland. Over 13 years I've probably had around £400 of him here and there. whenever CSA catch up with he disappears again
  • Having once having one of these loans Silverinha, I definitely feel your pain.

    You say that the loan is due to expire in 2021. With your current monthly payment and amount owed, that does not add up. Owing 30k at 12% interest and with monthly payments of £420, it will take you a further 11 years to pay off the debt.

    You need to check with your provider for a revised statement of payments, balance and future payment schedule. If you can re-finance at a better rate, I would do that. I managed to extend my first mortgage and take equity from my property to pay off the loan. They may negotiate the settlement figure for an early payment

    If you are still struggling, you can ask them to try and freeze interest but they would only probably do this, if you can prove you are unable to pay and they would want you to evidence this with a detailed income and expenditure evaluation.

    Hope this works out for you.
  • Thank you for the advice. I think I will look into this suggestion for sure. Hopefully being aged nearly 50 wont go against me .
  • D_M_ED_M_E Forumite
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    Your opening post gives the impression that the loan was joint, in both your names.

    However, following posts give the impression that it's only in your name - which is correct?

    If it's joint and he is still named on the mortgage/property deeds then there's not much you can do except either sell up and clear it - for which you will need his consent or probably a court order - or stop paying and let the loan company take possession and sell.

    Your other option is either bankruptcy - if you take this route he will be chased for payment if it's a joint loan, pity you don't know where he is if it is, you could pass his details on once you manage to find him.

    You need to talk to Stepchange and explore your options and see what they can come up with.

    You also need to very carefully read the loan contract and see exactly what it says about charges for missed payments and work out if they have kept to their side of what you signed up to.

    Also, have they been sending you an annual statement which shows what charges have been applied?
  • Thank you. Some sound advice there. Unfortunately its joint. But I am definitely going to start with speaking to step change. My first mortgage is up to date and not in arrears . I have made sure of that. Seems a shame to have to lose the house that my kids have lived in since they were born. Fingers crossed it wont come to that
  • You better ask for a statement to know in detail.
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