Swift Advances. Secured Loan Charges reclaim

[jansus]

This says something different - not what I was taught

 

 

Interest rate vs. APR

 

Don't compare mortgage offers based on interest rate alone. Consider their annual percentage rate (APR).

 

 

 

 

August 6, 2007

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When you’re shopping for a mortgage, comparing offers can be difficult. The interest rate lenders use to determine your monthly payment (also called the note rate) is only one part of the overall cost of a mortgage. That’s why it’s misleading to compare loans by looking only at this number. A better means of comparison is the annual percentage rate, or APR.

 

The APR formula

The APR formula combines a loan’s interest costs with other fees charged by a lender over the life of the loan, and expresses them as a yearly percentage. The APR is therefore a better reflection of the true cost of borrowing than interest rates alone and is a good benchmark for comparing loan offers.

 

The Truth in Lending Act

The Truth in Lending Act requires lenders to prominently post the APR on any loan advertisement. It’s usually located right next to the note rate. The idea is to prevent lenders from posting low note rates to lure borrowers, while at the same time hiding fees.

 

How it works

Here’s an example of how a comparison of APRs works in the case of two loan offers for a 30-year, fixed-rate loan of $150,000:

Offer A:

Quotes an interest rate of 6.5 percent, plus one discount point and an origination fee of 2 percent.

Offer B

: Quotes an interest rate of 6.4 percent, but charges two discount points, the same origination fee, and higher closing costs.

While the second loan may carry a lower interest rate and a lower monthly payment, a comparison of the APRs indicates that it is actually slightly more expensive overall because of the higher upfront fees:

 

Offer AOffer BInterest rate6.5%6.4%Monthly payment$948.10$938.26Discount points1 point (1% of $150,000) = $1,5002 points (2% of $150,000) = $3,0002% origination fee $3,000$3,000Other closing fees$800$1,150APR6.837%6.851%

Other costs

While comparing APRs is far more useful than simply comparing the note rate when considering different mortgage offers, it does have some limitations:

• Some upfront costs are not included in the formula -- such as the home appraisal, credit reporting fee and title fee -- and these may vary from lender to lender. Don’t forget to ask for a good faith estimate of closing costs, and ask which ones are excluded from the APR.
  
• The APR is much more useful for fixed-rate mortgages than for adjustable-rate loans. Because no one can predict how interest rates will change over the years, the APR for adjustable-rate mortgages is based on forecasts, which may turn out to be inaccurate.
  
• The APR assumes you will keep the loan for its full term, which may be up to 30 years, but few homeowners ever keep a mortgage this long. If you plan to refinance within five to seven years, a loan with higher upfront fees can end up being more expensive than its APR suggests.
  

[overdone]

Secondly with interest rates as far as I know the reason that actual and APR rates vary is because it all depends at what time the interest charge is calculated. For example on a balance at a certain date in the month , or on a daily basis or in the old days on mortgages it was calculated on the balance at the year end. This can affect the Apr quite a lot

Yes and many of the banks were getting it wrong and thousands of pounds were being refunded out of court via a no win no fee firm. They did a documentary on it about twenty years ago. Charging interest at the end of the month when the payment was being made early on in the month. Over ten years or so this mounts up to quite a few thousand.

[jansus]

We used to have borrowers who would

 

1) not pay the mortgage untill the end of the year the day before the interest was calculated (honestly we did not go to possession after three months like now) or pay a lump sum off just before the calculation .

 

2) manually check the interest calculation.

 

Also I agree with the above - on another forum I visit we have a case where the lender has made two very serious mistakes on the interest calculation.

[Sparkie1723]

Yes and many of the banks were getting it wrong and thousands of pounds were being refunded out of court via a no win no fee firm. They did a documentary on it about twenty years ago. Charging interest at the end of the month when the payment was being made early on in the month. Over ten years or so this mounts up to quite a few thousand.

 

HI overdone our payment was made on the 4th of each month....that maybe another suspect overcharge as well with us?

 

sparkie

[Sparkie1723]

The solicitor today asked me to make a list of the documents etc that I believe are being with held/concealed from us and he will ask the Barrister to get them.

 

so here is my list

 

1...A Subject Data Access request from Kestrel Loans No 1 Ltd which includes the account as per example contained in the docs I have given him.

Accounts being processed by Kestrel.

 

2...Copies of all the documents surrounding the transfer/sale of our account to Kestrel No

 

3... Copy of the Actuarial Accrual Account Summary from both Swift and Kestrel.

Which is a detailed statement of account

 

4...Copy of the Title Indemnity Insurance policy.

 

5...Copy of the specific signed consent given by Barclays to Swift for the transfer

Sale of our loan

 

6...Contact Barclays to ascertain if Barclays know about this sale/transfer of our loan and all other loans.

 

7...Copy of the underwriting sheet.

 

8...A copy of the list of Agents that Swift have and their agency numbers. Mr Webster called them a panel of Brokers.

 

One thing this solicitor confirmed that the Judge at my hearing was wrong and out of touch, about the fact that I said the charge on our property was improperly registered and the judge said it couldn’t be because the Land Registry would have contacted Swift and told them………He said NO they don’t……The registration will certainly be scrutinised by him and the Barrister.

 

sparkie

[cupcake68]

Hi Sparkie

 

Well done and good luck!

 

You are an inspiration to us all!

 

It just proves YOU MUST NEVER GIVE UP!

 

Do you have any idea how long it is going to take to get all this into court? I hope you don't have months and months of waiting!

 

Take care

 

Cupcake

[Apollo18]

Sparkie,

 

I think you'll find the interest calculator on this page Interest Rates Guide: Everything you ever wanted to know!... must use the same formula as Swift.

 

Glad to hear you're finally getting some of the assistance you deserve!

 

Apollo18

[dazpen]

Hi Sparkie, ive been in hospital so have missed the last two pages but just caught up mate. I new you would get legal aid mate. Its ugly the way you have been treated. I know what you mean when you say the other half is getting to the end of her tether. Mine has been there mate and at one point nearly split a 18 year marrige up. Now we are strong and feel that swift have a tidal wave coming there way. I am still dealing with our solicitors and wondered if we should tell our own solicitors of other cases in case they would like to talk cases through together?

[Sparkie1723]

Hi Sparkie, ive been in hospital so have missed the last two pages but just caught up mate. I new you would get legal aid mate. Its ugly the way you have been treated. I know what you mean when you say the other half is getting to the end of her tether. Mine has been there mate and at one point nearly split a 18 year marrige up. Now we are strong and feel that swift have a tidal wave coming there way. I am still dealing with our solicitors and wondered if we should tell our own solicitors of other cases in case they would like to talk cases through together?

 

HIya Daz .....Hope you are O.K mate..............it might be a good idea that asking each solicitor to talk to each other might be a good way to get a big group action going.

The application for an appeal will be in in the next couple of days I believe.

Once this is in possession is stopped.

 

sparkie

[dazpen]

Sparkie we will have to sort this out then. I am up your way one day next week. May there be a cup of tea and some light hearted chat about our freinds swift?

[Sparkie1723]

Sparkie we will have to sort this out then. I am up your way one day next week. May there be a cup of tea and some light hearted chat about our freinds swift?

 

You are welcome mate I'll PM you my phone No and you can give me a bell when ever

 

sparkie

[Marky1701]

Hi all, TFI Friday!!

 

From the OFT guidelines;

4.5 Early settlement charges should be fair and reasonable, and should

reflect the lender's necessary costs on early settlement. For regulated

agreements, they should be calculated in accordance with the relevant

legislative requirements. There should be transparency of early

settlement processes and costs. Provision should also be made to enable

the consumer to repay part of the capital early, in order to reduce their indedtedness.

 

With no arrears or other such charges,over the last 6 years I have paid back £29,000+ on an original loan of £28,500 taken out in 2003 over 15 years and according to a recent settlement figure still owe them £32,000 :confused:

 

Yes I will repeat; "

Early settlement charges should be fair and reasonable, and should

reflect the lender's necessary costs on early settlement.

 

Is it me or am I missing something here?

 

Edited December 11, 2009 by Marky1701

[Gallahad]

Hi all, TFI Friday!!

 

From the OFT guidelines;

4.5 Early settlement charges should be fair and reasonable, and should

reflect the lender's necessary costs on early settlement. For regulated

agreements, they should be calculated in accordance with the relevant

legislative requirements. There should be transparency of early

settlement processes and costs. Provision should also be made to enable

the consumer to repay part of the capital early, in order to reduce their indedtedness.

 

With no arrears or other such charges,over the last 6 years I have paid back £29,000+ on an original loan of £28,500 taken out in 2003 over 15 years and according to a recent settlement figure still owe them £32,000 :confused:

 

Yes I will repeat; "

Early settlement charges should be fair and reasonable, and should

reflect the lender's necessary costs on early settlement.

 

Is it me or am I missing something here?

 

Hi Marky, how long in to the 15 year term are you?

G

[Gallahad]

Apologies Marky just reread and I see you are 6 years in which of course makes it very unreasonable.

G

[Marky1701]

No worries G

 

I reckon at this rate, once I have paid them around £32,000, I should be in a position where I have 'broke even' and owe them what I originally borrowed.

 

Does £32,000 'reflect a lenders fair cost' on setting the loan up and administering it for 6 years I wonder? Thats about £444 per month - that seems fair - well it would to White & Co I guess

Edited December 11, 2009 by Marky1701

[sweetjane]

Hey Markie, in your Early Settlement quote did they make any discount of cost of credit? This seems incredibly high - even for Swift. Write and let our Mr Blocksidge at the OFT know your story:

 

[email protected]. gov.uk

All the best

SJ

[Marky1701]

Hi SJ

 

I already have done, along with a complaint about them keeping their interest rates at an artificially high rate. I am on a variable rate loan so I assume that because they keep hiking the rates up, this is translated into silly settlement figures.

 

Have a great Saturday everyone.

 

m

[SHELLSTER]

Hi everyone

 

I have been looking with interest for the past few months on your site and I have finally registered with you now...I think you are all amazing! Good luck to you Sparkie x Myself and my partner have found ourselves in a similar situation and it is causing no end of worry to say the least. We took out a loan with swift and we have now paid back £22,000 of a £25,000 loan...we have fallen behind recently with some payments (3 months roughly) and they have sent us a letter to say that they have applied for an order of possession after we had already complained to the FSA about these fools!!! I believe that the total loan is unenforceable for alot of reasons and I have done alot of research in various ways to gather evidence against them...can anyone tell me if I have a complaint in with the FSA and they are investigating it can Swift still go for possession if the complaint is logged? sorry to bore anyone but I am at my wits end.

[Marky1701]

Hi Shellster

Sorry to hear of your current problems.

 

To my knowledge, the fact that you have filed a complaint with the FSA will make no difference to the reposession process.

 

Write to the OFT as well.

 

Dont panic too much - if its a first hearing in court it is very unlikely they will be granted posession - it will more than likely be a suspended posession order subject to you making proposals to repay the arrears.

[Sparkie1723]

Hi SHELLSTER,

It makes no difference to Swift what complaints are in or who with...........they will ride roughshod over them all ..for one reason......they know that these authorities will not take action against them on one complaint alone............but by the time these people get enough complaints to act ................another 60 or 70 people have lost their homes..................this is the reason I am fighting them all the way to the High Court and if necessary to the House of Lords.

 

How a company with only 20.000 or so cusyomer borrowers can pay a dividend in onwe year of £33 Million pounds to a few shareholders, jus cannot be allowed to continue....they make this money from the sale of the repossessions ...not from their NORMAL business ......that's if they have got any "normal business".....they are in the repossession busines full stop.

THey do not have a "customer care dept" .only a "customer con dept"

sparkie

Edited December 12, 2009 by Sparkie1723

[SHELLSTER]

Thankyou so much for the quick responce guys, I feel slightly better knowing that other people are in the know, you guys are doing a great job. I will keep my fingers crossed for everyone, cannot believe that they can get away with this in this day and age!

[Marky1701]

They will keep getting away with it Shelster, if we let them. Thats why it is VITAL you join the fight. Fire off letters to the OFT and your MP.

 

We need the numbers - 1 or 2 people will struggle to make a difference but thousands will.

 

If Swift have, according to Sparkie, 20,000 customers, I make that approximately 20,000 people who are being bent over and shafted by these low lifes - thats a big number and one that the regulators cannot ignore.

 

COME ON EVERYONE!!!

[Sparkie1723]

AS everyone knows SWift applied for possession for our house by iussuing a possession order giving 17 days notice of hearing date.

 

They took no notice of this especially paragrapgh 7

...they just went straight for pssession......a good example of how they put two fingers up to everyone

 

 

 

 

 

Edited December 12, 2009 by Sparkie1723

[Sparkie1723]

WE got this letter from Swift.....Even what they say in this is not quite true.

 

Judge said ...............................Possession order granted.............

I asked for permission to appeal .....

Judge said ............NO Refused

I said .....................what if I pay the arrears

Judge said ...............that is up to the Claimant

That was it

 

NOw Swift are trying to appaer to comply with this protocol AFTER posssession order being given.

 

I have words for people like this ...but I just can't post them

 

sparkie

 

[Sparkie1723]

FRom our combined credit file that SWift copied to assess our income and expenditure BEFORE they gave us our loan

our commitments without all other household bills

 

Just our other joint credit commitments and our First Mortgage they were

 

£1,112 per month.........................£12.000 per year

Our JOint genuine income shown on our application documents was £27.000.

 

Loan payment to Swift £616.00 made £19000 per year OUT

We were 70

NOw we are on pension credit.............Of course I should have done my sums properly.......But so should Swift they would have seen we couldn't keep the payments up a lot quicker and easier than us ....they have a bachelor of Economics doing their sums and underwriting.

 

I suppose some will say crying after the milk is spilt is no use.........and I guess they are right really....got to take part of the blame myself.............you learn lessons even at my age