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  • FIRST POST
    • Former MSE Andrea
    • By Former MSE Andrea 3rd Sep 04, 3:17 PM
    • 9,418Posts
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    Former MSE Andrea
    Secured Loans: cheapest lending of last resort
    • #1
    • 3rd Sep 04, 3:17 PM
    Secured Loans: cheapest lending of last resort 3rd Sep 04 at 3:17 PM
    The following is the area to discuss or ask questions about the site article on secured loans.
    Last edited by MSE Helen Saxon; 26-06-2013 at 11:32 AM.
Page 1
    • Joe_Bloggs
    • By Joe_Bloggs 3rd Sep 04, 3:45 PM
    • 4,493 Posts
    • 1,583 Thanks
    Joe_Bloggs
    • #2
    • 3rd Sep 04, 3:45 PM
    Re: Secured Loans: cheapest lending of last resort
    • #2
    • 3rd Sep 04, 3:45 PM
    I am confused.
    If you take out or try to take out secured loan and have a mortgage them surely your existing mortgage lender has got to have a say in this.

    In my view a mortgage is a secured loan based upon part or all of a property. If you are going to take out loans that give other parties a claim on the principal asset then you are inviting a conflict if a disaster should happen.

    PS I do not wish to borrow money, but to learn of the pitfalls and benefits of the different types of loans.
    J_B.
  • nitrocat
    • #3
    • 3rd Sep 04, 10:37 PM
    Re: Secured Loans: cheapest lending of last resort
    • #3
    • 3rd Sep 04, 10:37 PM
    Interesting to know that secured loans usually have variable interest rates. Does this make the title possibly slightly misleading
    “Secured Loans: cheapest lending of last resort”
    as it may only be the cheapest lending of last resort if the rates stay low?

    “Use savings: The interest paid on savings is usually far less than interest charged on borrowing, so paying off debts with savings makes sense.”
    Is an excellent idea as long as the job market is good. If things look shaky in the future then wouldn’t having as big as a buffer as possible with savings (and clear credit cards) possibly be a better approach if there is a desire to keep the house?

    Nitrocat.
    • MSE Martin
    • By MSE Martin 5th Sep 04, 3:17 PM
    • 8,115 Posts
    • 42,285 Thanks
    MSE Martin
    • #4
    • 5th Sep 04, 3:17 PM
    Re: Secured Loans: cheapest lending of last resort
    • #4
    • 5th Sep 04, 3:17 PM
    Nitrocat to answer your question.

    1. The title does make sense. The point is they must be used correctly. The reason the article has such an extensive checklist is secured loans are only a last resort in specific circumstances. A title is a title. My reason for writing this is many people just call up the TV advertised horrors - this way people will know when ti take them and how to find the cheapest rate.

    2. Savings: Of course a cash fund is great IF you're debt free (excluding mortgage debt - though with a flexi mortgage even that is debatable). However the point is paying off debt with savings with a unsecured cards as back up is in the short term and money saver and the correct move.

    Martin
  • Dan1974
    • #5
    • 10th Sep 04, 2:28 PM
    Re: Secured Loans: cheapest lending of last resort
    • #5
    • 10th Sep 04, 2:28 PM
    the mortgage lender does have a say . !normally they have a restriction on your property which means that any company wishes to register a subsequent charge must get their consent. !if you want any free advice without obligation regarding loans please feel free to contact me at {note: email deleted, this is a commercial loans company contact and therefore counts as a post for gain which is prohibited here}

    I am confused.
    If you take out or try to take out secured loan and have a mortgage them surely your existing mortgage lender has got to have a say in this.

    In my view a mortgage is a secured loan based upon part or all of a property. If you are going to take out loans that give other parties a claim on the principal asset then you are inviting a conflict if a disaster should happen.

    PS I do not wish to borrow money, but to learn of the pitfalls and benefits of the different types of loans.
    J_B.
    • ksrao
    • By ksrao 12th Sep 04, 9:35 PM
    • 65 Posts
    • 8 Thanks
    ksrao
    • #6
    • 12th Sep 04, 9:35 PM
    Re: Secured Loans: cheapest lending of last resort
    • #6
    • 12th Sep 04, 9:35 PM
    My recent experience seems to be different.I have halifax mortgage and asked for a secure loan to buy a car.They qouted me 6.9% +£95 arrangement fee.I asked Lombard national the same amount as an unsecure loan,They offered it for 5.9% fixed and no arrangement fee. So in my case(with very good track record,a secure loan is costly and interest rate is variable!!!
    • MSE Martin
    • By MSE Martin 13th Sep 04, 4:30 PM
    • 8,115 Posts
    • 42,285 Thanks
    MSE Martin
    • #7
    • 13th Sep 04, 4:30 PM
    Re: Secured Loans: cheapest lending of last resort
    • #7
    • 13th Sep 04, 4:30 PM
    Absolutely Ksrao, if you've a good score - secured loans should never be taken - unsecured is almost always cheaper - 'loan of last resort' as i say!

    martin
  • jacobsdad
    • #8
    • 17th Sep 04, 3:48 AM
    Re: Secured Loans: cheapest lending of last resort
    • #8
    • 17th Sep 04, 3:48 AM
    Hello all, I am 32k in debt - 11k high interest(store cards etc)5kHP(car)16K unsecured loans (1@10k + 1@6k) ..
    I had a meeting with a consultant today who is from friendly mortgages # loans, he wants to put 16k on a secured loan and 16k onto debt management scheme has anyone out there done this - they are sending the forms out tonight and are eager to get them back, the loan would be 13.5% apr and the debt mnagement costs #£25 p/m???
    seems like a good idea as I am struggeling with over 10 creditors and am in arrears with everything 6+ psyments, also am self employed and have a self cert mortgage which I have missed 2 payments on so I may be getting a good deal, I am alittle suspicious though..
    help + advice would be apprecciated ++cheers.
    • Joe_Bloggs
    • By Joe_Bloggs 17th Sep 04, 1:22 PM
    • 4,493 Posts
    • 1,583 Thanks
    Joe_Bloggs
    • #9
    • 17th Sep 04, 1:22 PM
    Re: Secured Loans: cheapest lending of last resort
    • #9
    • 17th Sep 04, 1:22 PM
    Secured loans are usually cheap because they will take the security if you default. Your secured loan is not cheap it is extortionate.
    Check out the MSE page:-
    http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1094132767,59163,
    At the bottom in the Debt Counselling section its lists a range of organisations that can help you reschedule your debts for free. Get your paperwork/facts together and try the local CAB first to see what they say as soon as possible.

    Don't miss your mortgage payments as you will end up homeless and not have a secured loan option.
    J_B.
  • Gig
    Re: Secured Loans: cheapest lending of last resort
    I've had a lot of problems in the past (despite working for a building society - oops :-[) but I must say that in my experience, the CAB have been 1st rate. They won't judge you OR charge you for advice. Definitely go to them first.

    While I'm on, does anyone have any opinions re using a secured loan to get me out of a car finance problem. I got myself pretty well sorted through the CAB (still have things on small 0% interest, payments ticking over etc) but kept on with my car loan. I've recently been made redundant however and whilst I need a car to work, I also need to cut cost. The way I see it is I'm damned if I do and damned if I don't, since if I keep paying, it'll just cost me a fortune for a few more years and if I get rid, I write off lots too.

    [I'm really sorry if I should have posted my request somewhere else, but this is my 1st time]
  • Scrooge_McDuck
    Secured loans - my experience
    These are really last resort products!!

    Around 20 months ago I took out a secured loan with First Plus. After paying #300 per month for 20 months I was finally in a position to re-pay the loan.

    It cost me aprox #2,975 more than the origional loan to repay this after month 20.

    FP apply a early repayment charge which in the literature I was origionally sent was #19.46 per thousand. The actual charge I payed was #85.00 per thousand!

    i.e. I payed the following (all approx);

    20 x regular payments of #300 = #6,000
    35 x #85 early repayment charge =#2,975
    1 x #35,000 loan =#35,000
    1 x Admin charge =#150
    My total payments were approx #44,125

    Most people (after 20 months) would expect to pay back less than the origional loan (not #9,000 more!).

    The above represents my personal experience and oppinions. When I complained to FP they did not address my complaint as I requested.

    AVOID THESE SERVICES AT ALL COSTS IF YOU CAN!!


    If anyone has any advice on taking this further, please respond.
    • MarkyMarkD
    • By MarkyMarkD 29th Oct 04, 2:32 AM
    • 9,795 Posts
    • 4,216 Thanks
    MarkyMarkD
    Re: Secured Loans: cheapest lending of last resort
    Ooh another copy of the same post, but with different words. Why not cross-refer rather than repeating the same point in two threads?
  • Robert_Sterling
    Re: Secured Loans: cheapest lending of last resort
    I am confused.
    If you take out or try to take out secured loan and have a mortgage them surely your existing mortgage lender has got to have a say in this.
    J_B.
    When I was a consultant to a sub prime lender most of the customers were in arrears with the first mortgagee.
    If there was equity in the property the sub prime lender, as part of the deal, always payed the client's arrears to clear his account with the first mortgagee. In addition to this the subprime lender , in the event of a subsequent repossession of the property, would not get any money back until the first mortgagee had had what was due to him. No wonder the subprime lender charged a higher rate than the first mortgagee.
  • timbogay
    best deal for obtaining secured loan with poor credit history(merged)
    i have got on my credit rating one ccj from 2002 which has been paid off. i require a personel loan of £7000 for my 2 sons univercity funds. can anyone give me any information or tips as to which is the best and most sympathetic lender to apply to.
    many thanks
    timbogay
    Last edited by savvy; 11-05-2005 at 4:39 PM. Reason: To merge like topics and help OP with information
    • jonesMUFCforever
    • By jonesMUFCforever 9th May 05, 8:56 PM
    • 25,850 Posts
    • 13,056 Thanks
    jonesMUFCforever
    Have you approached your current bankers?
    Eric
    What goes around - comes around
    give lots and you will always receive lots
  • timbogay
    bad credit rating and personel loan
    i have approached my bank they are not interested
  • msi23
    Own $100,000.00 Property and can't get a $30k Loan!
    Hello, I have a Commercial property with no business on that property I have residence there. I have the property paid for and it appraised over $100,000.00. My credit is bad and self employed. I have tried to go to banks for a messily $30k for 10-15 year loan but the first thing they said was my credit was not good enough! Then when I had my brother co-sign for me they said that the building was commercial so they could not give me a home loan even though I live at the property. They said it would have to more or less look like a home because of the appraisal would go by that. I am tired of wasting my time and can believe I am having a hard time with this. Man I wish someone came up to me and wanted a $30k loan with a $100,000.00 collateral I would take it and wish they could not pay for it and make a bundle of money. Is there anyone out there with enough business sense to lead me in the right direction?
    Thanks
    PS I guess I should have went bankrupt with 25k worth of debt with a great credit score and job I bet then I get some many people wanting to lend me money I would have to it them off with a stick
  • onetime
    Can i get a sercured loan on my property, i have mortgage of £130000 and the property is worth 160000, i have only been in it a month have no bad credit but want £22000 to pay off credit/store cards and 2 loans over 25 years, i earn £23500 a year, does any body know if it worth the hassel asking for a quote, i will pay a much lower amount each month than i am at present.
  • HelenR
    Can i get a sercured loan on my property, i have mortgage of £130000 and the property is worth 160000, i have only been in it a month have no bad credit but want £22000 to pay off credit/store cards and 2 loans over 25 years, i earn £23500 a year, does any body know if it worth the hassel asking for a quote, i will pay a much lower amount each month than i am at present.
    by onetime

    Why would you want a secured loan if your credit rating is good ?
    shop around for the best unsecured loan , or see what cards you can get with good interest deals

    H
    Keep on keeping on...
  • notshrewd
    secured loan ripped of at repayment
    We have recently repayed in full a secured loan of £45000.00 On doing so we paid the loan plus two months interest extra as a penalty for repaying early and an additional £8000.00 for cancelling the payment protection plan that went with the loan as we now no longer required it. On complaining i have been offered a payment of £3000.00 as peacemeal from the bank. In effect i have had to pay an additional £5000. On top of the loan and on top of the extra two months payment for a facility I no longer needed just for paying this product off early. NEVER TAKE OUt a secured loan. Does anyone know how i can get this money back?
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