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I am currently going through a remortgage to purchase a buy to let property and was correctly advised by an independent adviser to consolidate my secured loan, so that it demonstrates I can afford the new monthly payments.
My original secured loan was taken out by Barclays FirstPlus, but was transferred to Red Castle and now Elderbridge (since Feb 2016). According to the Elderbridge statement (dated in February 2016);
Opening Balance on 25/07/2007 was£99,592 (monthly payment £764)
Closing Balance on 22/02/2016 was £26,731.92, arrears (£4189.28)
I did go through a difficult period in 2008 as a limited company, and did miss several payments in 2008.
During this period of difficulty in 2008, it appears Firstplus did something to my account totally unexplained.
For I have now notice on the Elderbridge statement, that interest payments had stopped since 7/8/2018. Which concurred with my new payment method of cash and standing order. Despite this, the statement illustrates that the closing balance was reducing. So by 7/4/2010 my balance was £84,188.84
In 2010, Firstplus was liable to refund PPI and translated onto my balance as follows;
10/06/2010 Ins Rebate Premium £1,356.99 (balance £82,831.85)
10/06/2010 Discretionary Rebate £18,235.01 (balance £64,596.84)
11/06/2010 Interest Adj Credit £4100.98 (balance £60,485.86)
14/06/2010 Refund cheque - was added to account (balance £63,029.15)
According to the statement, it then shows a huge gap of 6 months of missing payment (of which I don't recall), but would tally why Elderbridge think I'm in arrears of £4,189.29 Nevertheless from 2/4/2010 it shows regular payment of £595 (balance £60,673). The closing balance on 22/02/2016 was £26,731.92
My dispute is that I have since learnt that there is an ADDITIONAL accrued interest to pay £34,686.53. I have no idea why and where it has come from. This has come to light on the day my remortgage has been confirmed through my solicitors. Due to the solicitors acting on my behalf, it was they who received the final settlement figure, for the solicitors would pay off directly both the previous mortgage and secured loan providers.
Upon learning all this (on the day of the accepting the remortgage) I have gone back in my records and indeed the interest statement is on a separate page (sent to my wife). However, I don't appear to have recieved that last page. Nevertheless the front page should at least be clear on what is the current outstanding balance.
I'm in a predicament, for the new remortgage only covered what I thought was the outstanding balance of £26,731.92 (not the additional interest accrued of £34,686.53
I have since called Elderbridge and challenged this settlement figure as morally wrong and misleading. For I have never requested any costs to be with-held or for monthly payments to be on capital only. It makes no sense why any company would do this other than to keep you in debt. At what stage was I expected to pay this interest charge (at the end of the capital payments)? Seems so wrong and cannot believe they are allowed to do this legally.
I am keen to accept the new remortgage, but it will now leave me £34k out of pocket, which was planned towards a buy to let venture, which would no longer be possible. So this new remortgage would only be used to totally clear off this corrupt secured loan arrangement, and provide a surplus of money I can use to repay back my remortgage earlier.
How realistic for me pay settlement in dispute, whilst pursuing a refund?
Which I prefer to do, so that I'm no longer tied to these evil businesses. Or is it, once paid that's it - no case for them to answer to?
My original secured loan was taken out by Barclays FirstPlus, but was transferred to Red Castle and now Elderbridge (since Feb 2016). According to the Elderbridge statement (dated in February 2016);
Opening Balance on 25/07/2007 was£99,592 (monthly payment £764)
Closing Balance on 22/02/2016 was £26,731.92, arrears (£4189.28)
I did go through a difficult period in 2008 as a limited company, and did miss several payments in 2008.
During this period of difficulty in 2008, it appears Firstplus did something to my account totally unexplained.
For I have now notice on the Elderbridge statement, that interest payments had stopped since 7/8/2018. Which concurred with my new payment method of cash and standing order. Despite this, the statement illustrates that the closing balance was reducing. So by 7/4/2010 my balance was £84,188.84
In 2010, Firstplus was liable to refund PPI and translated onto my balance as follows;
10/06/2010 Ins Rebate Premium £1,356.99 (balance £82,831.85)
10/06/2010 Discretionary Rebate £18,235.01 (balance £64,596.84)
11/06/2010 Interest Adj Credit £4100.98 (balance £60,485.86)
14/06/2010 Refund cheque - was added to account (balance £63,029.15)
According to the statement, it then shows a huge gap of 6 months of missing payment (of which I don't recall), but would tally why Elderbridge think I'm in arrears of £4,189.29 Nevertheless from 2/4/2010 it shows regular payment of £595 (balance £60,673). The closing balance on 22/02/2016 was £26,731.92
My dispute is that I have since learnt that there is an ADDITIONAL accrued interest to pay £34,686.53. I have no idea why and where it has come from. This has come to light on the day my remortgage has been confirmed through my solicitors. Due to the solicitors acting on my behalf, it was they who received the final settlement figure, for the solicitors would pay off directly both the previous mortgage and secured loan providers.
Upon learning all this (on the day of the accepting the remortgage) I have gone back in my records and indeed the interest statement is on a separate page (sent to my wife). However, I don't appear to have recieved that last page. Nevertheless the front page should at least be clear on what is the current outstanding balance.
I'm in a predicament, for the new remortgage only covered what I thought was the outstanding balance of £26,731.92 (not the additional interest accrued of £34,686.53
I have since called Elderbridge and challenged this settlement figure as morally wrong and misleading. For I have never requested any costs to be with-held or for monthly payments to be on capital only. It makes no sense why any company would do this other than to keep you in debt. At what stage was I expected to pay this interest charge (at the end of the capital payments)? Seems so wrong and cannot believe they are allowed to do this legally.
I am keen to accept the new remortgage, but it will now leave me £34k out of pocket, which was planned towards a buy to let venture, which would no longer be possible. So this new remortgage would only be used to totally clear off this corrupt secured loan arrangement, and provide a surplus of money I can use to repay back my remortgage earlier.
How realistic for me pay settlement in dispute, whilst pursuing a refund?
Which I prefer to do, so that I'm no longer tied to these evil businesses. Or is it, once paid that's it - no case for them to answer to?
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