Central trust Louisegc

#1
WARNING- do NOT use this loan company!



I took out a 2nd charge loan with CT just over 2 years ago. I have never missed a payment and have not had any direct dealings until recently and god they are horrendous!



I'm getting a 4th bedroom extension and en-suite build soon and my mortgage company have agreed to offer me the additional borrowing, unfortunately to enable them to release the funds they need CT to lift the 2nd charge and they have refused! CT are claiming I don't meet THEIR criteria for additional borrowings as their loan to value is only 75%.



This now means I can't proceed with my mortgage company or my build and I'm deversated- how can they legally do this? I'm NOT doing the additional borrowing through ten so why do I need to meet their loan to value criteria? I've been back through my original paperwork and now where do they state anything about this circumstance!



I logged a complaint and CT simply said pay us off or get your mortgage company to re-vale your property ha! Why should I pay the £1500 charge to settle early and why should my mortgage company pay to re-value a property they don't need to re-value because they are happy with THEIR loan to value criteria!



I'm going to complain to the Financial Ombudsman but if anyone has any other advise I'd appreciate it! Also if anyone from CT is reading this i would appreciate your comments!



In the meantime I'd advise anyone thinking about taking a loan out with this company to run a mile, nothing but a bunch of cow boys with no customer service skills or humility!!

#2
When you take out a loan with a guarantee (IE the charge on your property), the charge remains until the loan is settled. Thats the same with any secured lender?

#3
Louise,

Plainly take this up with the FO if you feel CT are being unreasonable, however, I can't actually see anything in your comments that seems to suggest they are acting unreasonably. You are attempting to change the terms of the original agreement and they have every right to ask you to make remedies.



You are changing their share in the asset (your house) by getting the primary financier to put more money into the asset without the value of the asset being changed, in effect diluting their share. If the value of the property has increased or will increase as a result of the works being carried out then they are likely happy to proceed as their share will be protected. At the end of the day, if you default, they need to be sure they can get their money back. This sort of transaction potentially threatens that.



On a side note, your primary financier may not feel they need to re-value the asset as 1) their risk appetite may be different and 2) they are in the enviable position of being the primary financier, so if anything goes wrong they will get their money (or the bulk of it) first, so are running the least risk.



I am not affiliated with CT.

#5
Central Trusts website suggests that their APR is 12.7% typical.

Are you sure that you are in that strong of a financial position if you are taking out secured loans like this.



IMHO is a larger fourth bedroom and ensuite really worth stretching yourself so much that a current creditor says you no longer meet their lending criteria?



Good luck, I agree with the others I don't quite see what Central trust are doing wrong and if I was you I would either borrow more from your bank and remove the Central Trust loan and swallow the £1500 early repayment fee (you will probably save more than this in interest as they are a high interest lender it seems) or I would pay for my own valuation which would be a few hundred pounds if you believe your home has gone up in value so as to meet their lending criteria.



Finally why on earth would they lift the charge on the property, making their secured loan an unsecured loan? That's their security.

#6
It seems the OP won't be back as presumably they haven't had the responses they were hoping for.





But to sum up:





CT lent you £xxxx on condition they had a second charge on your property until the loan is repaid in full.





You are making the appropriate monthly payments but have not yet paid off the full amount.





You asked them to remove the second charge and they declined, unless you paid off the full amount.





Assuming the above is correct, how does them expecting you to honour the terms of the agreement you signed up for make them "nothing but a bunch of cow boys [sic] with no customer service skills or humility!!"

#7
OP is there any reason why you cannot re-mortgage the lot so that you can clear Central Trust?

If the equity is not there you are stuck.



You may consider moving elsewhere as an option.

#8
You have a mortgage.



You have a second mortgage with a low level mortgage company who charge a heavy interest rate, presumably because more reasonable companies would not lend to you.



Now you want another secured loan.



Sorry, but it sounds like you are living beyond your means.

#9



WARNING- do NOT use this loan company!



I took out a 2nd charge loan with CT just over 2 years ago. I have never missed a payment and have not had any direct dealings until recently and god they are horrendous!



I'm getting a 4th bedroom extension and en-suite build soon and my mortgage company have agreed to offer me the additional borrowing, unfortunately to enable them to release the funds they need CT to lift the 2nd charge and they have refused! CT are claiming I don't meet THEIR criteria for additional borrowings as their loan to value is only 75%.



This now means I can't proceed with my mortgage company or my build and I'm deversated- how can they legally do this? I'm NOT doing the additional borrowing through ten so why do I need to meet their loan to value criteria? I've been back through my original paperwork and now where do they state anything about this circumstance!



I logged a complaint and CT simply said pay us off or get your mortgage company to re-vale your property ha! Why should I pay the £1500 charge to settle early and why should my mortgage company pay to re-value a property they don't need to re-value because they are happy with THEIR loan to value criteria!



I'm going to complain to the Financial Ombudsman but if anyone has any other advise I'd appreciate it! Also if anyone from CT is reading this i would appreciate your comments!



In the meantime I'd advise anyone thinking about taking a loan out with this company to run a mile, nothing but a bunch of cow boys with no customer service skills or humility!!
Originally posted by Louisegc


I do feel for you if you cant get the money for the extension.



Why not sell the house, pay the secured loan off and get a new place to live.

#10
The three responses above nail it.



1. The lender makes the rules, not you.

2. If you don't like the rules, repay the debt. Your mortgage lender might oblige.

3. You're repeatedly spending more than you earn and increasing the amount secured on the property. From a distance, this seems potentially wreckless.

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