Can I Re-mortgage with Welcome Finance Charge on Property???

[harvey2103]

I have contacted the Land Registry and there is a charge on my property so the loan is secured.

 

I was having another look through last night and still there is nothing about cancellation or a notice of cancellation.

 

Along with this they have valued you the house at completely the wrong value, they have added a good £25,000 onto the value (which is quite a lot for where i live), they havent checked with the mortgage company about the value/equity etc otherwise they would have known there was no equity.

 

Another thing that suprised me is their credit check, I now have details of all the loans my parents and sisters have taken out over the years, along with my ex partners parents and brothers details and monthly payments! It amazes me that they would need to check all this!

 

Also i found the "missing records" its just one piece of paper with a long list of unanswered phone calls over the two years. They have noted the times I have written to them about a payment plan but no action has been taken on it.

 

i'll keep reading!!

[harvey2103]

Back again guys!

 

Can anyone tell me how to calcutate the total charge/interest due on your loan please? Ive tried many ways myself but cant seem to come up with the figures they have.

 

My loan was 13,000 plus 235 acceptance fee and APR is 25.90, this is over ten years. Im getting myself in a muddle trying to work it out!

 

Thanks

[MrZ]

Back again guys!

 

Can anyone tell me how to calcutate the total charge/interest due on your loan please? Ive tried many ways myself but cant seem to come up with the figures they have.

 

My loan was 13,000 plus 235 acceptance fee and APR is 25.90, this is over ten years. Im getting myself in a muddle trying to work it out!

 

Thanks

 

There isn't a quick and easy explanation, but a financial calculator helps.

 

In order to arrive at the APR 25.90% APR These are the numbers I used:

 

Total Financed - 13,235.00

Total Charge for Credit - 20,965.00

Total Amount Payable - 34,200.00

Monthly Rate - 1.94%

120 payments of 285.00

[harvey2103]

Thanks. Im still confused as when i look at it again, there is two interest rates. Its laid out as follows:

 

Total amount of credit - 13,000

Monthly payments - 279.72

No of months - 120

APR (Variable) - 25.90

 

Total charge for credit - 20,566.03

acceptance fee - 235

Interest Charge - 20,331.03

Rate of interest per annum - 25.20

 

Whats with the two interest charges? Nothing these guys do seems to make sense to me!!!

 

Thanks

[MrZ]

Thanks. Im still confused as when i look at it again, there is two interest rates. Its laid out as follows:

 

Total amount of credit - 13,000

Monthly payments - 279.72

No of months - 120

APR (Variable) - 25.90

 

Total charge for credit - 20,566.03

acceptance fee - 235

Interest Charge - 20,331.03

Rate of interest per annum - 25.20

 

Whats with the two interest charges? Nothing these guys do seems to make sense to me!!!

 

Thanks

 

One rate is called the nominal rate (25.20) which is the monthly nominal/flat rate. If your annual is showing at 25.20, then your monthly should be 2.1%

 

The other rate (25.90) is the APR and this reflects the compounded interest including all fees etc.

 

The APR is usually used by the consumer to compare loan offers. The APR is kind of like a price tag. The actual interest applied each month is based on the nominal monthly rate, which in your case should be 2.1% or 25.20 per annum.

[harvey2103]

Cheers! So based on the 25.2% they're pretty much spot on, that must be a first!

 

Its starting to look like they maybe havent made many mistakes on this loan, other than no notice of cancellation/cooing off period and the fact they've valued the property incorrectly. (although i find it hard to believe they could get it so right!!)

 

Thanks again.

[MrZ]

Most of the Welcome agreements I have seen do calculate the interest correctly. The lack of advance copy and no notice of cancellation will benefit far more than anything else they may have messed up.

 

So is there no PPI or other insurance? No Mortgage indemnity fee?

[harvey2103]

Ok it doesnt feel so bad that they got it right then!

 

Im not sure i understand the rules for the cancellation notice etc,

ive been trying to read the appropriate sections of the act today at work,

but my heads starting to feel like a burst balloon with it all.

 

 

To me, it seems they have to issue with a cancellation notice

BUT if they dont, there should be a cooling off period of 14 days from signing of the agreement??

 

 

I keep reading different things on this, some say seven days, some say fourteen

and it seems to depend on whether their was face to face business or whether it was done by post.

 

As for charges, you may find this hard to believe...but no PPI, MID, zilch!!!

All ive had in charges since 2005 are the acceptance fee along with £60 worth of charges.

 

 

Which seems strange cause ive had letters, house visits etc,

but then again their making their money on the fact theyve added £300 a month interest onto the balance

when i started missing payments.

[harvey2103]

Thanks, that makes sense now. as it was secured I had no cancellation rights.

 

I know I didnt receive an advanced copy as I kept everything on file myself and there is no no record/copy of it in the SAR but I cant see how I would even prove this, would they not just say it was sent ie my word agains theirs???

[MrZ]

dbabylon has summed things up pretty good for you.

 

Proof of evidence (in a legal sense) is often times nothing more than your statement of how things transpired. As dbabylon, the judgment would be based on the balance of probabilities. In other words, given all the evidence available, is it more probable that you were given an advance notice, or not. I,f for arguments sake, it was conceded that some sort of advance copy was given, then was the time required for the notice prior to signing allowed? The lender must not contact you at all during the consideration period.

 

The thing is, in order for any of this to be of use to you, you will need to go through the court. At the moment, many would argue that its not wise to bring an action as a claimant as the courts are more and more ruling in favour of the lenders. It may well be that if you do go via court, you may not win without appealing. The lower courts rule against you, you know you are right and need to appeal as this is where the law will be properly applied. The higher courts will not set a precedent that in essence reverse legislation. Saying that to say, you may be in for a a bit of a fight.

 

If you have the time, resources and patience, I'd say get good counsel and go for it, otherwise, it may be worth thinking about. Perhaps you can try to negotiate a settlement that you are happy with, without the need to go to court. In my experience though, Welcome are not to keen to negotiate, even when they know they are in the wrong.

 

I too did not have an advance copy or cancellation notice. Despite all of the numerous things wrong with my loan, my barrister is of the opinion that the lack of the advance copy is fatal to Welcome and their defense of my claim. This is grounds for an improperly executed and unenforceable agreement. Granted each situation and facts of each case are different, and you need to give them some thought. Have you thought of getting a few opinions from some consumer credit lawyers?

[harvey2103]

Thanks guys, was without a computer there for a few days.

 

I really dont think I would have the time and money to fight this all the way through the courts, Im currently working two jobs at maximum hours to pay off my debt!! My ex left me in this mess so im determined to get it all paid off myself.

 

I guess I was just looking for something to bring the balance down a bit, I mean for a 13,000 loan, Ive paid £5,000 approx yet its currently sitting at £16,000 - it just seems ridiculous that they can get away with that!!!

 

Why are welcome so against settlements when they are apprently in financial difficulty, you would think they would take what they can from people????

[harvey2103]

Hi,

 

Does anyone know if you can still make payments to WF via the automated payment service. I had a link to it previously but its now not available.

 

I dont want to set up a direct debit with them and refuse to speak to them on the phone. I have written to them several times requesting there bank details so i can make payments via online banking but im getting no response (as usual!!)

 

Any help would be appreciated.

[harvey2103]

Hi all,

 

I am looking for some advice on whether I can re-mortgage my property when I have a second charge on the property.

 

The short story is, I stupidly took out a Welcome Finance Loan about 10 years ago now and it was secured on my flat. After separating from my partner, I ended up not being able to afford the monthly payments, the loan has been passed onto various debt agencies but it now with Lowell, I pay an agreed sum each month and have been doing so for around 4/5 years now.

 

I am currently trying to remortgage my flat as myself and my partner had a baby, we cant afford to move to a bigger property but are hoping to convert the loft into a second bedroom. The remortgage would just allow us to do the conversion but there wouldn't be enough to pay off the WF loan. As I will be adding value to the property, my intension would be to sell the property a few years down the line and pay the WF loan off at that time.

 

I have been accepted for a new mortgage by Halifax, they are aware of the second charge on the property and said they would write to WF and request that the charge be postponed, which sounds quite straight forward to me but I'm fully aware nothing with WF is straight forward!!

 

What are the chances of WF postponing the charge when the debt has been sold on? and what are the chances of Halifax approving the mortgage, if the second charge is now with a debt recovery agent?

 

I am thinking that I shouldn't be getting my hopes up and its unlikely Halifax will approve the re-mortgage, but any advice would be appreciated, I might save myself some fees if I knew in advance what the likely outcome is?

 

Any advice would be fantastic.

 

Thanks,

 

 

HVY

[dx100uk]

How much did you take out?

How much to go?how much are their insurance s and the mif

Bet they owe you after everything is reclaimed

 

Dx

[dx100uk]

Numerous threads merged

Now gonna go read the history

 

Brb

 

Dx

[harvey2103]

Hi dx,

 

I have no idea how I managed to merge those threads but it gives you an idea of the history and that I have already requested sar.

 

I took out 13k initially and my current balance is just over 13k now. I only pay 50 a month to the dca and have done for years. I never get any phone calls or bother from wf or whichever dca is handling it at the time.

 

If wf have sold the debt on, Should they have removed the charge or does it not work like this?

 

I got the loan directly from wf as they had an office local to me.

 

Thanks

[dx100uk]

I did it:lol:

 

I never got around to looking

been a bit busy.

I review things today if I can

safe to say you've been royally cash cowed I bet

hence the balance today.

 

theeres no compulsion to remove a charge upon sale

though i'm surprised it has not been removed

as many were years ago under some kind of deal with I think the FCA etc.

 

dx

[dx100uk]

doesn't look like many holes to me.

 

 

any chance you can scan up all the statements and the org agreement you have please?

pop EVERY PAGE to JPG

redact them

and put each page into a multipage word doc

and file save as .pdf

 

 

if not email them to me

if I give you an email

[harvey2103]

Lol ok, I was confused!

 

Yeah Ive been reading about the charges being removed on other people's wf loan but can't seem to find out much about it. That would solve all my problems as Halifax wouldn't have an issue if the charge was removed.

 

I can scan and email them to you, won't be until Tuesday when I'm back at work as I've no scanner at home. There's a lot of info too, they had a fair file on me!

 

Thanks