rob2006

iTrader: (1)

Myself and the wife have recintly applied for a secured loan on our house and we are a bit confused?

We recieved all the documents to sign etc at the begining of March and completed the 8 day cool-off/consideration period (something to do with loans under 25k being regulated.)

Our loan is approved and a valuation has been completed. Our house has increased by 25k in 1 year. (we have spent about 15k on it though)

This morning we recieved documents to re sign and it states we must again wait the 8 day consideration period as they have lowered the APR.

Hey i'm all for a lower APR but for **** sake its made the loan an outstanding £2.20 cheaper per month. We are only taking the loan over 4 years so its saving us £105 in total.

My head is sore with this loan application now and i really cant be arsed with it any more but i'm stuck. I want to go an buy a new car on Friday and now it looks as though i'm not going to get it.

The consideration time wouldnt have bothered me. its the fact that i only have the 30th march as a day off and then nothing until the end of april. As i will be working away from home and have no choice in the matter.

Do i really need to wait this consideration period again when the loan company have reduced the figure rather than increased it. I just want the bloody money and be done with it.

Rob

mart360

Why have you taken a secured loan on a sub 25K figure?

the cooling down period is just that, its for you to consider just what you are taking on.....

basically you are staking your home against your new toy....

if you fail to meet the repayments, not only will you loose your new toy, you will loose your home as well!!

so for a 25k loan, you could loose a 50K+ plus property as well!!!

unfortunately you still have to wait the cooling off period... its the law


Mart

rob2006

iTrader: (1)

maybe i didn't explain it very well.

We are taking a 15k loan. and i understand the cooling off period. We've already done the cooling off part back at the start of march.

what we have now is yet another cooling of period because the loan company have lowered the APR which in turn makes the payments less. The amount we are still borrowing remains the same.

what i dont get is why we have to wait another 8 days cooling off period when we were happy with the finance deal we signed up for. We didn't ask for it to be changed and for the sake of £105 which is what this new deal will save us over the 4 years repayment term.

Can i tell the loan company stuff your new deal i dont want it..... I want the one we were offered and accepted back at the start of march. Which is better for them as they get an extra £26 in interest per year. If i have to accept the new agreement then it means i stuffed for yet another month and this toy i want to buy is rather rare!!

Rob

swampster

iTrader: (1)

The problem with secured loans, especially being regulated under 25K is that they are so bound up with err regulation (hence the name).. which is why they take such a long time to sort out. I am surprised however that they basically re-arranged the loan terms due to APR dropping after it had progressed so far! Firstly because most secured loan APR rates are moving upwards due to the recent increases in the Bank of England Base Rate, and also LIBOR. Also they could have easily achieved this by continuing with the initial application and readjusting the APR later... a good deal of secured loans are variable rates.

Unfortunately for you, because they did rearrange the loan terms before completion, this would mean that you had to re-sign, and by doing that they have to give you the 8 days cooling off period, it's the regulations you see. If they hadn't done that they could have had the FSA jumping all over them.