Solitaire is now offering a finance package to enable its residents to pay their annual property charges in 12 monthly payments by Direct Debit. Below are the answers to some common questions about financing your property charges. If you cannot find the information you require below please call us on 020 8449 6125.
- 1. How does it work?
- 2. How much does it cost?
- 2a. Why do I need to pay interest?
- 2b. Are there any other charges?
- 2c. The interest rate you are charging is different from the APR? Why is this?
- 3. Who are Amber Credit?
- 4. How do I apply?
- 4a. If I take out a finance agreement, does it mean I do not have to pay my invoice in full now?
- 5. What happens if I want to cancel the agreement?
- 6. What happens if I miss a payment?
- 7. If I miss payments will it affect my credit rating?
- 8. When can I take out a finance agreement?
- 9. I think I should have received an application form but I have not. What should I do?
- 10. Can I change my payment date ?
- 11. What is included in the Property Charges?
- 12. Can additional costs be included within the loan?
- 13. The amount of the Property Charges on my credit agreement is not what I expect it to be based on the invoice I have received. Why is this?
1. How does it work?
Answer : Currently your annual property charges are divided into two or four payments. This means that you get two or four invoices, the first at the beginning of your property's financial year and the rest at three or six month intervals thereafter, which are payable immediately.
Solitaire have teamed up with Amber Credit to offer a financial package that allows you to spread those payments over 12 months.
2. How much does it cost?
Answer : Amber Credit charge an interest rate of 6.75% which is equivalent to an additional £6.75 per £100 borrowed.
Typical Example :
| Property Charges | £1,200 |
| Deposit | £0.00 |
| Amount of Credit | £1,200 |
| Number of Instalments | 12 |
| Instalment Amount | £106.75 |
| Total Amount Payable | £1,281 |
| 15.5% APR Typical | |
Amber Credit is a trading name of Amber Select Ltd. Registered in England. No 3742453. Registered Office: The Bailey, Skipton, North Yorkshire BD23 1DN.
2a. Why do I need to pay interest?
Answer : You need to pay interest because you are borrowing the full annual property charges from Amber Credit. They are advancing this in full for the benefit of your service charge account.
2b. Are there any other charges?
Answer : You will be charged £15.00 for each rejected direct debit.
2c. The interest rate you say you are charging is different from the APR? Why is this?
Answer : APR’s were introduced to enable consumers to compare rates across a wide range of loans, such as mortgages or credit cards, where other charges, such as set-up or annual fees, may be levied alongside the interest charge.
The APR is calculated using a complex formula that, particularly on a 12-month loan, is not representative the actual flat rate of interest you will pay.
Whilst the APR on the service charge scheme is 15.5%, the real, or rather flat, rate of interest is 6.75%. This means that for each £100 you borrow you will pay an additional £6.75 in interest.
There are no hidden fees or charges applied to your account (other than charges if you default e.g. £15 if you bounce a payment)
For further details of how to calculate the APR you should refer to the Office of Fair Trading Website www.oft.gov.uk.
3. Who are Amber Credit?
Answer : Amber Credit is a trading name of Amber Select Limited which is a wholly owned subsidiary of Skipton Building Society.
They are a specialist loan company who have agreed to provide you with an unsecured loan for the full value of your annual property charges.
For more information click on the links below :
http://www.ambercredit.co.uk
http://www.skiptongroup.com
4a. How do I apply?
Answer : You will be sent a credit agreement with the first of your annual invoices.
Simply complete both copies of the credit agreement you have been sent and return the original to Amber Credit in the pre-paid envelope supplied.
Amber will process the application and write to you confirming the instalment collection dates.
4a. If I take out a finance agreement, does it mean I do not have to pay my invoice in full now?
Answer : In most cases, yes. However, if you have an item on your invoice entitled "Balance Brought Forward" you must pay the value of this item immediately as it is not covered by the finance agreement.
5. What happens if I want to cancel the agreement?
Answer : If you want to cancel the agreement at any time you may do so.
To cancel the agreement you simply contact Amber Credit by phone and ask for a settlement figure.
Then send a cheque to Amber Credit for the full settlement figure along with a covering letter stating that you wish to terminate the agreement.
It's as simple as that.
6. What happens if I miss a payment?
Answer : Each month, on the day you have specified, Amber Credit will attempt to debit your nominated account.
If the debit fails they will try again 7 days later.
If they are still unable to collect the debit they will write to you and may also contact you by phone.
In the event that they are unable to resolve the matter it will be referred to Solicitors for legal action.
N.B : there is a £15 fee for any Direct Debits that fail.
7. If I miss payments will it affect my credit rating?
Answer : Not usually.
However, in the event that issues surrounding missed payments are unresolved and Solicitors have to be instructed it may well affect your credit rating.
8. When can I take out a finance agreement?
Answer : If you are eligible for finance and do not currently have a finance agreement you will be sent an application form along with your first invoice at the start of your property's financial year.
You must apply for finance at the beginning of the financial year. It is not possible to set up a finance agreement thereafter until the start of the next financial year.
9. I think I should have received an application form but I have not. What should I do?
Answer : Contact Solitaire on 020 8449 6125.
10. Can I change my payment date?
Answer : Your first repayment date cannot be changed although you can specify the date of future collections. Either indicate your preferred payment date on the credit agreement, or simply call Amber Credit after your first payment has been collected.
11. What is included in the Property Charges?
Answer : Your Property Charges will include Ground Rent, Service Charges and Reserve Fund Charges for the coming year. Your invoice may include additional charges from the previous year. These cannot be included in the Finance Agreement and must be settled immediately by normal means.
12. Can additional costs be included within the loan?
Answer : This is not currently possible. However, we may make this facility available in future.
13. The amount of the Property Charges on my credit agreement is not what I expect it to be based on the invoice I have received. Why is this?
Answer : Normally, if you receive two invoices per year, Solitaire will take your total Property Charges and divide it by two. It will then send you two equal invoices at six month intervals.
Therefore, the amount shown on your credit agreement for Property Charges should be twice the amount on your first invoice. However, your first invoice may include adjustments from the previous year. These will appear on your invoice as "Balance Brought Forward". This item must be paid in the normal way as it is not covered by the finance scheme.
