I have no clue - mortgages and UK-Ocean Finance

Putting it briefly, I just need some advice over why this deal doesn't seem so bad to me, when after reading all about the likes of ocean finance and similar outfits, the deal should look far less desirable.

We are in the lucky position of owning our own home with no mortgage. I do have have about 6 grands worth of debt from 5-6 years ago. All of these have for the last 5+ years been regularly paid via Baines and Ernst (another rip off, but we live and learn).

We are now thinking of bundling all of these in on a mortgage and paying off the only family holiday we are ever going to get + clear overdraft

Obviously, we are also very naive and clueless when it comes to mortgages etc.

we want to borrow 10950

with ocean finance they can get us a capped rate 6 year repayment mortgage with insurance and their grabbing fee for 214.71 per month (total repayable

15459)

Having checked what the loan repayments would be with Natiowide who seem to be very proud of their rates etc, i would be paying 217.00 per motnh (total repayable 15624)

forgetting about the fact that we shouldn't even be contemplating putting a mortgage on the property, what am i missing with regards to the ocean finance deal? Surely it should look crap compared to nbationwide. Bear in mind, i admit we know nothing about mortgages etc.

TIA, andy

Reply to
scoob
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In message , scoob writes

I think it is the cost of the insurance. The Loan From a typical b/soc today at 4.75% would be a payment of about £178.

What is the APR of the Ocean Finance Loan?

Reply to
john boyle

don't know yet, i just insisted on the "bare-bones" figures over the phone rather than have them send contracts and stuff out. I know the sickness, illness, redund etc insurance costs 702.18 over the full term.

andy

Reply to
scoob

Just to clarify, the figures in the original post for Ocean and Nationwide, both included their own loan repayment insurance cover over the same period (6 years)

Andy

Reply to
scoob

In message , scoob writes

OK< but we would also need to know what that cover actually covers as their can be huge variations, in order to get a true comparison. Lets get the APR of Ocean to be sure.

Reply to
john boyle

I`m not too sure on this, but I believe some of these "newer" loan advert spamming companies have some odious T&Cs - like cranking up the repayment costs exponentially if you happen to miss a payment for any reason whatsoever.

Reply to
Colin Wilson

So currently your home is safe if you fail to make a payment on loan repayments? And you'd like to alter this?

Why not cut down expenditure or get a part time extra job and clear the debt quicker?

Interfering with your house will put you in a bad position imo in terms of being tmepted to take out more debt than you need.

What is your job security?

How can you possibly ignore the fact you're putting your house potentially on the line?

Reply to
mogga

I can't remember if you are forced to use their insurance or not. It's generally poor value for money compared with getting it separately.

Compare the cost of insurance (is it life insurance or accident, sickness & unemployment insurance ?) from

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The Motley Fool site is excellent at explaining the basics -

also the forum

- TMF Dealing With Debt board. Many of the people have been there, done that, & got the T-shirt, so the advice is from people who have a detailed knowledge of the subject. Post on there - they'll be able to tell you whether the Ocean deal makes sense and any alternatives.

Daytona

Reply to
Daytona

Hi Please look at the insurance cover carefully. You are likely to be getting five years of cover only. If you take out monthly cover you will pay say

3.99 per 100 per month cover if you search around. work it out yourself. approximately 8 per month to cover 200 x 12 = 96 per annum x five years = 480

You are going to be charged a single premium of around 700 which you will then pay interest on. Dont do it !

regards

Peter

Reply to
Peter Bottomley

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