Nat west business loan - cant find agreement

[Jackien]

Re: Nat west business loan - cant find agreement

Just some brief complete guess work calcs.

Say the rate was 1.5% above base rate

Loan taken out in 2006 base rate was about 5% then so she may have been paying 6.5%.

If it wasn't a base rate tracker then those payments will have continued until her 9 month break in 2009.

If after the break they couldn't find the agreement (or any records bizarely) they may have assumed it was a tracker? or just used their current rate ? and by then the base rate was down to 0.5% hence the lower payments, possibly at 2%?

For example in 2006 the payments could have been £2,177.77 monthly whereas after the break could have been £1600 odd.

What would help would be if the OP could give us an idea of the repayment amounts pre break and post break.

Whatever, something has gone really wrong, and the OP shouldn't end up being disadvantaged, or losing her home, because of it, and the £300 compensation for natwest losing her agreement is laughable.

A lot of assumptions were made I think, as I mentioned earlier a repayment or interest only loan would make a difference to the payments woudnt it, and the fact it was a tracker, the figures are 1800 and 700.

[Jackien]

Re: Nat west business loan - cant find agreement

Well 250k over 15 years without any interest at all is £1,389 per month so paying £700 a month now is worrying. £1800 a month is around 3.6% (which for 2006 would have been amazing!)


We can't do anything until the SAR comes back.


Out of interest do you have something in writing from them saying the new payment amount of approx £700 ?

Also as far as you are concerned the original loan was it repayment or interest only?

Originally repayment I assumed, the exact figure prior was £1801.00, this was 2009 dont forget, I going to look and see what it was in 2006. I will also look to see if I have anything in writing re the £700 I think I did, and hopefully it will show up in the SAR anyway.

[Guest]

Re: Nat west business loan - cant find agreement

I asked them to restructure the loan more than 2 years ago and they said this one would have to be cleared, and for the reasons above (previous reply) the loan is at a low rate due to the interest rates. Getting another loan out of them would not be easy I Im sure. They are just not making money out of me and have the charge so im easy pickings.

Yes indeed and they have little to lose in waiting , and I presume that there is additional equity there?

It is difficult to advise because I do not know all the details and what has gone on before, but it seems to me that a conversation should be had as a matter of urgency between the bank and yourselves with the goal of creating new agreement. If the old agreement has been defaulted it is unlikely that the would or even could re-instate it.

It may be that they are in no hurry, all the time the arrears build, the debt becomes a larger proportion of the security value(as I say I do not know the figures) they may be awaiting a trigger point at which they will commence an action.

Really as said we need a fuller picture, I am sure we will be able to will assist when you get the details of your SAR in the meantime personally I would seek a face to face talk with one of the banks executive accounts team.

[Amethyst]

Re: Nat west business loan - cant find agreement

Sorry was farting about with numbers.... so around this sounds like it was Interest Only ...

Interest Only @ £700 a month would be a 3.5% interest rate
Interest Only @ £1800 a month would be around 8.65% interest rate

So could be 3% above base rate on interest only ? (stacks up with the base rates)


Do you have a policy or something in place to make the capital repayment at the end of the term ?

[Amethyst]

Re: Nat west business loan - cant find agreement

So we need to find out the terms of the 9 month break in payments - especially if was an interest only loan - was the interest added to the capital during that period (increasing the capital figure) and the £700 was calculated without taking that into account ?

[Jackien]

Re: Nat west business loan - cant find agreement

Sorry was farting about with numbers.... so around this sounds like it was Interest Only ...

Interest Only @ £700 a month would be a 3.5% interest rate
Interest Only @ £1800 a month would be around 8.65% interest rate

So could be 3% above base rate on interest only ? (stacks up with the base rates)


Do you have a policy or something in place to make the capital repayment at the end of the term ?

2006 payments were nearly £2500 so not interest only I recall it being around 1.5 above base, it was a good rate at the time and even better now!! I remember because we had a big deposit, obviously the £700 is not right and probably should be around 1500/1600. I do have the funds to put it right but Im going to make them jump through hoops for it. Your replies have given me strength.

[Guest]

Re: Nat west business loan - cant find agreement

I don't know if you have already said so forgive me , if I repeat the question.

How does the equity in the security stand up now compared to when the loan was taken out, we know that property values have dropped, is there now a negative equity in respect to the loan or do you have a surfeit, in other words is your property worth more or less than the security value.

[Jackien]

Re: Nat west business loan - cant find agreement

I don't know if you have already said so forgive me , if I repeat the question.

How does the equity in the security stand up now compared to when the loan was taken out, we know that property values have dropped, is there now a negative equity in respect to the loan or do you have a surfeit, in other words is your property worth more or less than the security value.

The property is probably worth about the same 50% LTV although its better than that because of what has been paid off and we have potential for a building plot here which is potentially very valuable, which is why Im clinging on in here !!

[Guest]

Re: Nat west business loan - cant find agreement

The property is probably worth about the same 50% LTV although its better than that because of what has been paid off and we have potential for a building plot here which is potentially very valuable, which is why Im clinging on in here !!

Sounds like you have excellent leverage to negotiate a new deal, however it must be remembered that whilst the old loan is still drawing interest it will be eroding the equity in you property, a good reason to get them moving IMO.

[Streetwise]

Re: Nat west business loan - cant find agreement

2006 payments were nearly £2500 so not interest only I recall it being around 1.5 above base, it was a good rate at the time and even better now!! I remember because we had a big deposit, obviously the £700 is not right and probably should be around 1500/1600. I do have the funds to put it right but Im going to make them jump through hoops for it. Your replies have given me strength.

You need to phone them and ask for a settlement fee, a breakdown of all charges and copies of statements since the last statement received,you have to ask why they issued a formal demand and what rate of interest they are applying to your account at present and from when PHONE NOW.

[Jackien]

Re: Nat west business loan - cant find agreement

Sounds like you have excellent leverage to negotiate a new deal, however it must be remembered that whilst the old loan is still drawing interest it will be eroding the equity in you property, a good reason to get them moving IMO.

Yes I agree but will I get a better rate on a new deal, I think not. But in principle yes.

[IanM]

Re: Nat west business loan - cant find agreement

If you have sent a new SAR to them today then don't contact them at all until after you receive the response to the SAR.

Is it possible that, when you took the payment break, someone at the bank disposed of your file by accident?

It may well have been lost as you had to contact them to resume paying the loan after the break so I would wait for the SAR.

[IanM]

Re: Nat west business loan - cant find agreement

http://www.thisismoney.co.uk/money/a...acts-they.html

[Guest]

Re: Nat west business loan - cant find agreement

If you have sent a new SAR to them today then don't contact them at all until after you receive the response to the SAR.

Is it possible that, when you took the payment break, someone at the bank disposed of your file by accident?

It may well have been lost as you had to contact them to resume paying the loan after the break so I would wait for the SAR.

They get 40 days to answer an SAR 200k at about 3% would cost the OP about £650 in interest in that time.

Just a point

[Streetwise]

Re: Nat west business loan - cant find agreement

They get 40 days to answer an SAR 200k at about 3% would cost the OP about £650 in interest in that time.

Just a point

My point is that when you default with the bank the interest rate you are charged increases buy about double better to find out NOW.