This is an important question and illustrates some interesting points.
FTB jumped to conclusions based on a misunderstanding of the position.
He used language which I consider defamatory and had to remove.
If you read just the first post, you may have a negative view of the companies involved.
If you read the entire thread, it looks as if he got good advice and a good product
Brendan Burgess
Administrator
askaboutmoney.com
I hope someone can advise me inappropriate and defamatory comment removed - Brendan .... my predicament is as follows...
I have just purchased a house, taking out a 100% mortgage with EBS, arranged by the broker REA. This was the mortage which suited myself and my partner best based on our circumstances at the time.
We paid 5k upfront out of our own pockets and needed to pay a further 15k booking deposit within 21 days. EBS do not fund this themselves - GE Money do on their behalf. I was sceptical of taking out this loan as I knew there would be additional costs involved, but having spoken to REA who assured us the interest owed would be nominal (and being under time pressure to get the 15k to the builder), we applied and took the loan in May of this year. It was a 15k loan over 5 years - I've made 4 installments of 310eur and we must pay it off in full with the mortgage cheque proceeds.
I was blown away to discover I now owe 14,324eur.... having thought I would only owe 15,000 less (4 * 310.00) = 13,759.00 + a small bit of interest for the amount of time the loan was open.
I am being told that they use "the rule of 78" - I hadnt heard of this at the time.
Further defamatory comments removedAs it stands, Im being asked to pay 623eur in interest for a 4 month loan !!!! Im paying interest on the same money twice.... on the short term loan and on the mortgage amount.
Please advise what I should do - has anyone else been in this situation?
FTB jumped to conclusions based on a misunderstanding of the position.
He used language which I consider defamatory and had to remove.
If you read just the first post, you may have a negative view of the companies involved.
If you read the entire thread, it looks as if he got good advice and a good product
Brendan Burgess
Administrator
askaboutmoney.com
I hope someone can advise me inappropriate and defamatory comment removed - Brendan .... my predicament is as follows...
I have just purchased a house, taking out a 100% mortgage with EBS, arranged by the broker REA. This was the mortage which suited myself and my partner best based on our circumstances at the time.
We paid 5k upfront out of our own pockets and needed to pay a further 15k booking deposit within 21 days. EBS do not fund this themselves - GE Money do on their behalf. I was sceptical of taking out this loan as I knew there would be additional costs involved, but having spoken to REA who assured us the interest owed would be nominal (and being under time pressure to get the 15k to the builder), we applied and took the loan in May of this year. It was a 15k loan over 5 years - I've made 4 installments of 310eur and we must pay it off in full with the mortgage cheque proceeds.
I was blown away to discover I now owe 14,324eur.... having thought I would only owe 15,000 less (4 * 310.00) = 13,759.00 + a small bit of interest for the amount of time the loan was open.
I am being told that they use "the rule of 78" - I hadnt heard of this at the time.
Further defamatory comments removedAs it stands, Im being asked to pay 623eur in interest for a 4 month loan !!!! Im paying interest on the same money twice.... on the short term loan and on the mortgage amount.
Please advise what I should do - has anyone else been in this situation?