6th March 2019, 15:04:PM
My late mother has a secured loan on her property from Blemain Finance.
I vaguely remember helping her to getting a loan as I was staying with her at the time and even though the loan was secured on her house her salary wasn't enough to pay it (she was a dinner lady) so they used mine as well.
At the time mum was intending on selling her house and paying off the debts she had,
one with Skiptons for £76,000 approx. and
then the Blemain one which she got 4 years later.
I always wondered how she was able to raise finance but I guess that they had the loans secured on the house so would get their money either way no matter whether it was affordable or not.
in Jan 2019 I received a letter from Blemain saying that they had over charged the account because of an Incorrect calculation in Building Insurance premiums and were refunding charges of £275.49. I decided to order a SAR from them which they were good about and didn't charge for and once the magnitude of paperwork came through it made for shocking reading:
Original loan was for £13,000 @ 19.3apr
120 payments of £232.69
Total payback £27,922.80
This was over a 10 year period.
They have stated that the loan to value was 40.48%
On top of the loan was a :
£995.00 brokers fee (First Trust)
£455.00 loan acceptance fee
Skipton arrears fee £481.84
therefore the loan total was
Interest rate variable @ 14.95%
Also after going through the loan even the my mother had building insurance she was charged to have Blemains buildings insurance as well.
This equalled £477.36 over the time of the loan.
I didn't think you were allowed to insure the same thing twice?
There was also:
£444.00 of arrears charges
£90.00 on visit costs
£12.00 land reg charge for copies
£5.00 for a land reg priority search
Online issuing fee £100.00
Issue os possession proceedings £40.00
Court preparation fees £59.00.
Mums mortgage with Skiptons was for £76556.43 at a payment of £400.00 per month
Blemain at £232.69 per month
Her salary without mine was £1000.00 per month plus tax credits.
Blemain also wrote to mum about £276.00 charges that they had added but hadn't notified her of back in 2013 & 2014.
They refunded the interest of this which was £47.00 in 2015 but surely that amount of charges would have put up the amount of loan thus the amount of interest chargeable for those 2 years before they refunded it back.
Sorry this is so long but I am doing my best to add as much detail as possible here.
Also for every £232.69 that was paid every month £179.37 was interest charges.
Poor mum she never had a chance.
The loan was cleared prior to mums death in 2015 when she sold her house.
The early settlement figure was £14,451.27
Repayment admin fee £195.00
Building insurance charges to settlement date £371.00
Costs and charges £1,1878.00
Total settlement amount £16,205.63
Mum struggled all the way through this loan to stay on top of the payments of £232.69 and her mortgage of £400 after adding it all up she paid off £8756.19 and then £16205.63 = £24961.82 for an original loan of £13,000.00
Gobsmacked isn't the word!
in their SAR a letter was enclosed saying that they are legally required to react or withhold certain info from the file.
they are allowed to withhold certain information from inclusion in the request.
They had also noted in their files that mum was a vulnerable person.
even though they knew and had evidence that she was dying from cancer they still charged arrears charges early repayment fee buildings insurance again and further costs and charges.
Once again sorry for the length of the post but I didn't want to leave anything out.
I think I can claim back the building insurance ? but is there anything else ?