Loan secured on property

PaulaMalone
PaulaMalone Posts: 1 Newbie
in Loans
10 years ago i took out an interest-only loan of £30,000 on my house which was secured. I have now come to the end of the agreement and to my dismay the final amount payable is £34,800 !!

I have being paying the "interest" only for the entire period and not missed a single payment so where has the extra £4,800 come from?

Is this legal and can i claim it back ?

Please help :sad:

Comments

  • System
    System Posts: 178,090 Community Admin
    Photogenic Name Dropper First Post
    edited 9 October 2017 at 6:29PM
    Have you looked through your loan agreement? Have you looked at any statements? Were there fees for things such as legals or arrangement fees which at the time you chose to have added to the loan to be repayed at the end?

    If they are charges you agreed to when you signed up then yes they're legal but without us seeing your loan agreement nobody here can tell you whether they're legitimate or not.

    I know it seems to be a strange thing to do nowadays but have you tried phoning them up to ask why it is £34800? The loan company are more likely to give you the reason than we are.
  • PeacefulWaters
    PeacefulWaters Posts: 8,495 Forumite
    If it's on the credit agreement I'd guess there's a good chance it's perfectly legal.

    Brokers fee?
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Tarambor wrote: »

    I know it seems to be a strange thing to do nowadays but have you tried phoning them up

    What is this? 1975?

    :)
  • bris
    bris Posts: 10,548 Forumite
    First Post First Anniversary Name Dropper
    Deleted_User wrote: »
    What is this? 1975?

    :)
    I know right, it's much easier to post on here and wait a couple of days to be bombarded by different opinions and still be no further forward. Phone them up lol, that was so last decade.
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
    Name Dropper First Anniversary First Post
    bris wrote: »
    I know right, it's much easier to post on here and wait a couple of days to be bombarded by different opinions and still be no further forward. Phone them up lol, that was so last decade.

    Im noticing it alot, would expect a phone call to be the first thing to be a first thing to do.
  • StopIt
    StopIt Posts: 1,470 Forumite
    DCFC79 wrote: »
    Im noticing it alot, would expect a phone call to be the first thing to be a first thing to do.


    Or to read the credit agreement which would have set out the monthly payments along with the fees etc and the final payment at the end.


    Of course, the default now is to run to the internet and ask if being charged fees are "legal" instead of just checking what you signed up for, but hey ho.


    As stated, contact the loan provider, and get your paperwork to check what you actually agreed to begin with.

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
  • Vectis
    Vectis Posts: 683 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Out of interest (pun NOT intended), how were you intending to pay off the sum borrowed if you were only paying back the interest?
  • MEM62
    MEM62 Posts: 4,746 Forumite
    First Anniversary Name Dropper First Post
    Vectis wrote: »
    Out of interest (pun NOT intended), how were you intending to pay off the sum borrowed if you were only paying back the interest?

    I would expect that the OP have some financial vehicle (saving / investment plan or similar) to settle the original amount.

    What they really needs is the original loan documents so that they can see the T's & C's and answer their own question instead of asking the opinion of random strangers that do not have the benefit of sight of the agreement and therefore no clue what the OP signed up to.
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