Loan Doctor

Most Recent Questions:

Question:I have a client with £44,000 of unsecured debt including store cards, credit cards and £5,000 on an overdraft. He has a property worth £280,000 with £70,000 left to pay on his mortgage. He wants to take out a second charge loan to consolidate the debts. Could you give me some advice on how best to direct my client?

Maeve Ward, Head of Sales at Shawbrook Bank says:

"If the customer has approached their Mortgage lender and been declined for a FA, or is currently tied into an ERC or on an attractive rate that would be altered by additional borrowing then a secured loan could be the answer. On the information provided below the client would qualify for our Platinum plan at a rate of 7.9%, Monthly payment £352.22 and APR 8.5% subject to all other underwriting criteria being met.

"All our products allow the flexibility to overpay either monthly or as a lump sum with no penalty and providing the customer provides us with 28 day’s notice they can redeem the loan at any point with only a £195.00 fee to pay."

Question:I have a mortgage of £130,000 and my property is worth £160,000, can I get a secured loan against it? I have only been living in the property for one month, and have a very good credit rating. I want £22,000 to pay off credit/store cards and two loans over 25 years. My annual salary is £23500

James Rainbird, Managing Director of Pink Pig Loans says: "Unfortunately the maximum loan-to-value with our prime funder is 85% so this client would not be in a position to raise the required £22,000, this funder has a min loan advance of £7,500 so we couldn’t look to raise any funds for them via the secured loan route

Question:We have recently re-paid in full a secured loan of £450,000. In doing so we paid the loan back, plus two months additional interest as a penalty for repaying early, as well as £8000 for cancelling the payment protection plan that went with the loan, as we no longer required it. After complaining, I have been offered a payment of £3000 as piecemeal from the bank. Essentially I have had to pay an additional £5000, on top of the loan and on top of the extra two months payment, for a facility I no longer needed just for paying this product off early. Is this an isolated case, or do all secured lenders charge additional payments such as the ones I incurred?

Rob Derry, Managing Director of Brunel Loans and Mortgages, says: "This case seems a little complex. I don’t think the loan doctor is the best person to ask, an insurance firm that deals with PPI would be able to give a more suitable answer."