Swift are planning to repossess my property next week - help!

[Sdq23]

In 2006 I took out a secured loan on my property with swift advances, the loan was £44,000. The loan term was 10 years, with monthly repayments of approx £450.

 

3 years ago I missed a few payments and fell into arrears with them of £4000 and in 2014 they took me to court in regards to the arrears. I managed to clear the arrears by making an agreement of paying £200 more on top of the original monthly payments.

 

The arrears were cleared but now the term of the loan has ended (in 2016) and I am left with £44,000 still left to pay (somehow??).

 

 

Swift are now planning to repossess my property next week unless I can pay them the full amount.

I have put in the N244 in court today and have my hearing on Monday.

 

I have been in contact with swift for these past few weeks trying to sort out something with them but they aren't listening.

 

 

I also have 2 acres of land in another country which I have told swift I am willing to sell to pay the amount I owe but it will take a few months for it to get sorted.

 

 

I have even showed them the documents and letters from the lawyers in that country.

But they are still not budging.

 

Can anybody please help with some advice?

[dx100uk]

have you got all the statements?

 

 

dx

[Sdq23]

I have got majority of the statements.

[dx100uk]

so how much of this balance are penalty charges & all the unlawful insurances you were made to take out...

 

 

I cant see how if you only missed a few payments you can still owe £44k!!

[Sdq23]

Date of Execution of Loan: December 2005

Duration of Loan: 120 Months

Amount of Credit for Loan: £25,365.00

Broker Fee: £2,500.00

Admin Fee: £530.00

Arrears: £8,592

Opening Balance December 2016: £42,796.28

 

This is from the Account statement in December 2016

 

Apologies for the Arrears figure in the first post.

 

When I have checked through most of the statements I will post the penalty charges and insurances.

[Andyorch]

Was you only making interest only payments...and not paying any of the Capital back?

 

Andy

[Sdq23]

I want to upload the payment history from 2006 to 2013. How do I do this?

[dx100uk]

click upload^^

 

PLEASE do it to ONE multipage PDF

not lots!!

[Sdq23]

I have attached payment history from 2006-2013 and also payment history for 2012-2013. I don't have time right now to upload all the statements since it will take a while to find then scan them all.

 

Thanks

swift payment history breakdown 2012-2013.pdf

swift payment history 2006-2013.pdf

[dx100uk]

tariff of charges too

[BazzaS]

Was you only making interest only payments...and not paying any of the Capital back?

 

Andy

 

This.

 

Andy may have hit the ball on the head even before the payment paperwork was posted up!.

That paperwork shows a 12% APR, so roughly 1% / month.

 

45k loan?

1% / month : monthly interest about £450 - which is what is shown.

So, it looks suspiciously like this was an "interest only" mortgage. Was there a separate "endowment" component??

 

So, the OP can look towards claiming back any unlawful charges or mis-sold insurances, but if this was an interest only mortgage, the capital was always due to be repaid at the end of its term!

[determindator]

It's a secured loan not a mortgage. Swift secured loans are set up with the interest added up front to the loan. This added to the principal is accruing interest for the whole term. A redemption statement will show more clearly where they're coming from with this £44k outstanding. They must have added a lot of charges for this amount still to be owed if all your contractual payments were made.

 

With ref to your Court hearing, I believe the Judge will want to know how Swift can expect to repossess your home if you are doing everything right to keep your home and imo will support you to do this.

[Andyorch]

A 10 year secured loan on your property is as good as a mortgage.

[determindator]

It feels like it but it isn't to buy your home. In this case as far as we know the borrower has repaid the loan as stated on the agreement within the term and there should not be a surprise amount left after the term. It's a mystery at the moment. Need more info.

[meellis]

Andy.

a 10 year loan against your property is/was as good as a mortgage in everything but the important eyes of the laws/regs.

 

 

I say was because it has been recognised and all current secured lending comes under mortgage regulations, surprisingly though existing products are not being included.

 

 

If I was cynical I would say the regulators are aware of the problem so are avoiding the onus to act being placed upon them.

 

 

You also asked whether it was an interest only loan,

with any of these loans if you have charges added near the beginning it is added to the capital which nullifies the payment, you are soon only covering the interest.

 

 

If you are unaware of this then the payments are never increased to cover the charges or costs that are added hence the fact you never pay the loan off.

 

 

Companies like this know there is no requirement to keep you fully informed on an unregulated loan so don't.

 

 

Read into that what you want.

[Andyorch]

It feels like it but it isn't to buy your home. .

 

Andy. a 10 year loan against your property is/was as good as a mortgage in everything but the important eyes of the laws/regs.

 

Thanks chaps...Im fully aware of the difference in the type of agreements...Mortgage>Secured Loan and its legislation...I simply stated its as good as one in that there is no provision to reduce the capital because of the scandalous interest rates and penalties being applied...thats all.

[meellis]

Andy, being site team I guessed you would know.

 

 

My reply was more generic for the others who might be reading and might not understand and also to highlight that 1st and 2nd charge are now both covered as mortgages but the relevant authorities have chosen not to include existing products.

 

 

This has left existing 2nd charge loans ( usually termed as mortgages by the likes of Swift) as totally devoid of regulations of any type because the authorities will not recognise them as mortgages or as consumer loans.

 

 

The concern we all need to understand though is these are generally long term products which are only just beginning to end and I fear there are a lot of people who are just unaware of the position they might be in.

[Andyorch]

Many thanks meellis....yes its a very valid point and information that posters should be aware of.As you state now that theses agreement are beginning to mature/come to the end of the term no doubt we will have many more threads on this subject.

 

Regards

 

Andy

[determindator]

Thanks chaps...Im fully aware of the difference in the type of agreements...Mortgage>Secured Loan and its legislation...I simply stated its as good as one in that there is no provision to reduce the capital because of the scandalous interest rates and penalties being applied...thats all.

 

I know you know also Andy, my reply was to the previous poster. Many wish their loans with Swift would come under the mortgage regulations.

 

More payment history needed. If you request a redemption statement it will be more clear to see the problem.

[Andyorch]

[determindator]

If the hearing was on Monday 13th how did you get on?

[determindator]

If the hearing was on Monday 13th how did you get on?

 

Has help for poster been going on and not posted.

[Andyorch]

Rule of 78:

 

For loans of under £25,000 a potential hidden penalty used to come from ‘rule of 78' interest calculations, a complicated formula which artificially allocates repayments towards interest not capital, leaving more left to repay than you think. Repay very soon after borrowing and it can mean paying back more than you borrowed. Find out more: Rule of 78.

 

Thankfully people taking out loans these days don't have to worry as the government has banned rule of 78 charges, however most people with loans taken out before that will be caught by this.

[determindator]

Do you know how this Swift customer got on in Court??

 

That's how Swift make people feel hopeless with all the doom and gloom which comes with this type of lending unregulated over 25k before a certain date so on and so on.

 

So how did this Swifter get on?

[Andyorch]

Do you know how this Swift customer got on in Court??

 

Afraid not determindator...last activity 9th February 2017 15:01...we will just have to wait and see if there is any update.