Loan turns in to mammoth payout to bank
Posted on February 04th 2009
In the late 1990’s many people took out loans and mortgages for their properties from what looked like a brilliant deal, resulting now in debts of high proportion.
A retired decorator took out one of these loans to the value of £20,000 to repair the roof and install double-glazing on his property.
The loan seemed to be a great deal being in some cases, interest free or a low fixed rate interest, but lurking within the paper work was the dreaded small print that has led many into over 4 times more debt that the original loan.
The loan gave the bank the right to claim back up to 75 of any increase in value the property may have. This is where the ex decorator became a victim. He decided that it was time to move after his wife passed away and due to the property now being worth £180,000, the man now had to pay back the bank 75 of the increase along with the original loan and a £1000 fee amounting to £96,000.
He is now living in a static caravan, as this is the only thing that is affordable after the bank claimed all of the outstanding money.
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