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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Good morning, I have a question regarding an equity loan taken

Customer Question

Good morning, I have a question regarding an equity loan taken out on a property.
The original agreement was that the equity loan was for 45.27%, this was then amended by the lender to 44.14%
8 years later I have asked for the redemption figure as I wish to pay back the loan and it has been calculated on the current market value of my home at a percentage of 45.28 which weren't agreed when I first accepted the loan.
Please advise?
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you.What does the loan agreement say about the calculation on value please?Alex
Customer: replied 2 years ago.
Good evening,Thank you for the reply....Under 'Notice to borrower' it states;
Please note that under this equity mortgage you will have to pay back the repayment sum when you redeem the mortgage. The repayment sum will be the percentage of the actual sale price (where greater than the value) when you decide / are required to redeem which represents the percentage of the purchase price funded by your loan from us (such percentage to be reduced accordingly, where there has been a previous part payment).
Expert:  Ash replied 2 years ago.
What is the dispute here? It looks like it was for 45.27% and was reduced down to 44.14%.Have you got anything to say its 44.14% in writing?
Customer: replied 2 years ago.
Yes they wrote to my solicitor;
'We apolygise or the clerical error made in our letter of 7th October 2008, however the initial proportion should be 44.14%, and we ask you to amend the charge to show this as we cannot seal it as it is'I have recently asked for a redemption figure and they have calculated it at 45.28%The correct percentage at the time of taking out the loan would have been 45.27% but they changed it to 44.14%, this was not the correct percentage in comparison to the money I borrowed, the correct one was the first one but this is not my error.Do you know which figure I should be paying back please? Is it the correct percentage that they have calculated now or the original percentage that they changed to 44.14%Just to sum it up the correct percentage should be 45.27% - which they first put in contract
They changed this to 44.14% - incorrect in comparison to the money borrowed
8 years later they have told me that the correct percentage is 45.28%
Customer: replied 2 years ago.
House purchase price - £131600
money borrowed from lender - £59575
Correct percentage - 45.27%Current market value - 162000
money to pay back should be 45.27% which is the correct amount
44.14% which they put the percentage as in the contract
45.28% which they are saying it is now as it was calculated incorrectly when I took out the loan with them
Expert:  Ash replied 2 years ago.
but they have signed the contract saying 44.14%
Customer: replied 2 years ago.
I haven't seen the contract with 44.14% on I've only seen a letter to my solicitor from them asking for it to be changed to 44.14% and I don't remember signing anything
Expert:  Ash replied 2 years ago.
You must have signed something, you really need that document.In short if that document says 44.14% then you are fine. If that document says. 45.27% then you are in difficulty.You can ask for a copy of it under the Consumer Credit Act and the Data Protection Act. They must provide a copy by law. This will give you what you need to know.Can I clairfy anything for you about this today please?Alex