Barclays Marine Finance cash in on repossessions seller beware

From your figures
£1119.44 month x 12 x10
Total
£ 154 332

But it isn't, it's £134280

I'm not having a pop at you and FWIW my house and (admittedly small) boat are paid for but cheap money does look awfully tempting /forums/images/graemlins/grin.gif

As a matter of interest what APR do Barclays charge for a marine mortgage?
 
Dear Adey,

I will delete this in a min if you would like after you amend your post.

The £20k shortfall is the deposit.

you end up paying £154 334 for a £100 000 boat.

check out the boat on the link.

I phoned Essex and confirmed the figures.

£20 k deposit
10 year term

cheers
Pete
 
In order to buy the boat for sale at

£99 950
you pay £20 000 deposit

and
£1119.44 per month

Times that by 12 as there are 12 months in a year

the example is based on a 10 year term so times that by 10

= £134 332.80p

You have already paid
£20 000

After 10 years you will have paid a total of

£154 332.80p

There will most likely be PPI on top of this.




Thats a waste in excess of


£54 332



If the calcs are wrong blame Essex Boatyard (link above).



In fact assuming the original poster paid a 20% deposit on his £100k boat he had already signed up to throw away £54 000 (would have been much more 5 years ago).
Not sure how long he has had it for but that is pretty much what has happened.

as he says wasted equity.
 
Ahh, okay.
Borrowing £80k costs £54k in interest..got it.
Borrowing the same £80k secured on property rather than the boat costs £17.6k. That's an awful lot of difference to keep your house away from it.
Back on subject....
No offence to the OP but what did he expect? If you stop paying the loan they take back the boat and sell it as quickly as possible. You don't get the best price in a fire sale.
 
[ QUOTE ]

No offence to the OP but what did he expect? If you stop paying the loan they take back the boat and sell it as quickly as possible. You don't get the best price in a fire sale.

[/ QUOTE ]

Precisely. There is a world of difference between:

A boat owner happily boating away on his boat but with it on the market and happy to sell it if he gets a sensible offer, happy to still own and use it in six months if he doesn't.

A bank who's client has stopped repaying their loan to him and have been forced to take in a depreciating asset and pay for the storage and upkeep of same who just need to out it and recover their funds since the funds are clearly not coming in the agreed way (ie by loan repayments).

If you default on your loan, what on earth do you expect? The lender to pat you on the back and say "there there, no problem, no rush, we'll take care of everything for you".

What you've really done in this instance is try to walk away from the problem. Bit like handing the keys to a trader in return for cash. Trust me, that cash figure would absolutely not be "retail price".

If you're unhappy, try getting a trade bid. If it's more than £70K problem solved, bet it's not though.

And in the meantime start praying that the boat will in fact sell at £70K. If it doesn't you could be in a negative equity situation and dreaming of the time that all you lost was your equity...
 
[ QUOTE ]
Ahh, okay.
Borrowing £80k costs £54k in interest..got it.
Borrowing the same £80k secured on property rather than the boat costs £17.6k. That's an awful lot of difference to keep your house away from it.
.

[/ QUOTE ]

Sorry to chuck a spanner in the works but

if you remortgage your house the BS or Bank will ask for life cover.

I have just been on direct line life and got a quote for your average mr and mrs 50 year old fat git
£100k for 10 years costs

£288 month and does not include PPI cover which costs an arm and a leg



£26 685.60
add that to your ( unchecked by me)
£ 17 600

total
£44 285 wasted

Thats why even if Gordon makes the interest rate - 1% the country is still in the .....
 
I dont think our friend has got quite the replies he was hoping for.

We normally have a recession about every 10 years, so every one used to remember the last one and act accordingly.

This time the boom has been carried on for 20 years, by more and more borrowing. It all had to end in tears.
 
That is so sad. All I can think of is that "There but for fortune....."

I wish you luck

May
xx
 
Yep, good luck with it all.
Have had a few rows in the past with the bank, funny how quick thier attitude can change.
 
Hey, look on the bright side, all that cash you handed over in taxes in the good times has bought you and most of the UK population a huge chunk of Barclays shares (yeah right)- when they pay back all the loans we will all be rich - minus of course bonuses paid for doing such a great job as a load of bankers.......!

Sad to hear whats happened to the OP, whats happening at present to many is grossly unfair.

Barclays want their money back, haven't they already had it! I want my money back for bailing them out, I wonder if they would like it if the tables could be turned......
 
HH1960, whilst I have sympathy for your predicament, I am amazed that you should think that any finance house should act in any way other than it's own interest. You stop paying the installments and they will repossess and sell on as quickly as possible. Period. It's been like that since for ever. I don't see why you think Barclays are acting in a different way to any other finance house and I don't see why you're blaming Inwards because they will be under instruction from Barclays to sell asap
As for your advice, I can't see that it is realistic. A finance house might give you a month or two's grace to sell the boat yourself but, if you don't hand the boat back when they insist, they'll just get a court order
 
[ QUOTE ]
Sorry to chuck a spanner in the works but if you remortgage your house the BS or Bank will ask for life cover...

[/ QUOTE ]
The mortgage deal I looked at was just the first one on the Moneysupermarket website. Details here. They don't insist on life cover or even their buildings insurance. The only fees I can see are the valuation fee and your legal costs. 4.1%apr does look tempting but I think I'll resist and just keep saving. Problem is every time there's a nice sum in the bank the wife finds something else to spend it on /forums/images/graemlins/ooo.gif
 
What I am amazed at: Is that when Barclays get into trouble they receive some of my taxes to get them out of it.

I dont want my taxes spent on supporting incompetantly run businesses, I would prefer that it goes towards better health care systems for people who really need it and the like.

We have all rolled-over and let these people off the hook, their arrogance is astounding, the OP got into trouble for whatever reason and all that he wanted was a fair deal not a hand-out - instead it would appear he was shafted.

Banks get into trouble due to their crass incompetance and not only receive my tax money but some get paid a bonus too to reward their incompetance!

I am not a professional financier but I am a professional engineer, if I designed multi-million pound systems that did not work, I would not receive a bonus I would get the sack!

Well I would have, had I not been the principle and retired at 53!
 
the lesson I have come to learn over the years is, when dealing with any money lenders is to have a VERY large jar of Vaseline to hand so to ease the pain when you get shafted,
and you will get shafted, as others have already eluded to, they are not in business to help you.

but then again we live in a culture of "must have it now" nobody seems to save for things they want anymore
 
[ QUOTE ]
Hey, look on the bright side, all that cash you handed over in taxes in the good times has bought you and most of the UK population a huge chunk of Barclays shares (yeah right)- when they pay back all the loans we will all be rich - minus of course bonuses paid for doing such a great job as a load of bankers.......!

Sad to hear whats happened to the OP, whats happening at present to many is grossly unfair.

Barclays want their money back, haven't they already had it! I want my money back for bailing them out, I wonder if they would like it if the tables could be turned......

[/ QUOTE ]

Barclays did not get money from our taxes, did they?
 
NO: As far as I recall they declined because they did not want the government ' looking over its back' when it came to lending to small businesses and homeowners, caused a stir with the shareholders as did raising foreign investment, with the entire 19-person Barclays board offering itself up for re-election at the AGM - but it's really the principle that I object to. I think what has happened to the OP if true is scandalous!
 
Spot on, Barclays didn't take the govt's money but some think it's only a matter of time until they do
 
[ QUOTE ]
- but it's really the principle that I object to. I think what has happened to the OP if true is scandalous!

[/ QUOTE ]

Which bit? /forums/images/graemlins/confused.gif
 
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