12% APR variable if to increase please give opinion? Thoughts? Anything!

[vicky160985]

Please could anybody tell me their opinion on the below figures as I've only just taken a calculator to do the maths and I'm speechless.

The original agreement details are:

Credit facility total = £562'000.00

Lenders arangment fee = £12'000

Legal fees TBA (that's what it says on this )

Repayments each month = £6394.00 x 180 months

Apr 12.0%

total of £1150920.

That's if the interest isn't varied too mind.

The interest isn't far off the repayment each month.

Thoughts or anything at all. I'm shocked. Especially as that's with out the unfair fees etc

[Crazy council]

Re: 12% APR variable if to increase please give opinion? Thoughts? Anything!

What typed of finance is that

i have seen bridging loans for property development look like that, butt usually only over 24-36 months. 15 years is the usual term for BTLs or redevelopment linked to them.

The bigger the risk with finance ( like developing property's as aposed to just buying and selling ), the bigger the fees and rates, usually because the lender hedges part of the debt with another lender or insurance co.

[vicky160985]

Re: 12% APR variable if to increase please give opinion? Thoughts? Anything!

Hi crazy council.
Thanks for your reply.

It was secured on our properties that we had bought over the yrs (previously secured / financed by natwest).
1st charge on 11 properties and 2nd charge on my mums house.

When we went into the agreement the lender had valuations done which came to 1.3 mil on evrrything.

At that time we owed the natwest bank 240k on it all. The rest was made up by consolidating a number of smaller earlier loans taken out with the same group only a regulated firm within the group. By bringing them all together (majority being hp agreements ) they explained how the repayments eould be easier as one but they wanted the properties from natwest to do that for us.
Stupidly it went ahead. Purely bcoz as it was we cud not afford to keep up with them all individually and we were really struggling. It was the only option. We didn't give thought to regulation stupidly enough.

The one big loan began and still the repayment amount was too much. Although we did bank into them everything coming in from rents etc. Thry didn't carry out any affordibility assesment.

Missing just one payment meant wed never get back on top of it . There was no forbearance. Within the space of 3 yrs the 1.3 mil portfolio was in the hands of lp receivers and auctioned off. Costs and charges added each month took us deeper and deeper in debt.
Today everythings gone. And there's an outstanding balance still of around 600k which continues to increase at the 12% rate.

My dad built it all from nothing. Over 20 yrs of his life dedicated to be snatched within a few yrs.