Need some loan advice, please
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Hey everyone 
About 2 years ago I got a loan for 7.5K, paying back 247 a month which has 2 years left to run more or less (2020).
As the usual happens things come up and circumstances change, basically in a year I'm going to be going for a mortgage, also need a new car etc. Was looking at a loan for about 18K, luckily my credit score is good so I got some good offers for monthly payments, about 340 a month. My current loan want 6K settlement figure, is it worth getting a bigger loan, paying off my current loan?
Ive spoken to a mortgage advisor and my current loan wasn't impacting on any forthcoming mortgage, but obviously taking on two loans at a time will, hence this is why I don't want to be looking at a car on finance..
Any advice is greatly appreciated, thank you
About 2 years ago I got a loan for 7.5K, paying back 247 a month which has 2 years left to run more or less (2020).
As the usual happens things come up and circumstances change, basically in a year I'm going to be going for a mortgage, also need a new car etc. Was looking at a loan for about 18K, luckily my credit score is good so I got some good offers for monthly payments, about 340 a month. My current loan want 6K settlement figure, is it worth getting a bigger loan, paying off my current loan?
Ive spoken to a mortgage advisor and my current loan wasn't impacting on any forthcoming mortgage, but obviously taking on two loans at a time will, hence this is why I don't want to be looking at a car on finance..
Any advice is greatly appreciated, thank you
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Comments
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How long is the new loan you are looking at spread over?Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS0
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Your figures don't make sense, 2 years ago your loan was 7.5k and in that time you have repaid nearly 6k yet you still have 6k left as a settlement figure?0
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Probably be looking at spreading it over 4 years0
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High interest rate as it was a first time loan
247 per month over 4 years = 118560 -
How much do you earn? How much do you expect to borrow for a mortgage? What deposit will you have? What did your adviser say about a bigger loan?
We really can't tell without more information, but for any young person of my acquaintance I'd be advising there is a choice between a car or a house.0 -
No. As I said this was a first time loan , I had no defaults on any payments as I never had any payments previously to make on anything , my credit score would have been average at the time as I had no credit cards no loans etc, this was basically my first financial commitment0
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I make about 21K per year before tax, plus any overtime, I'll have about 11K to put into a deposit (will also be a joint application with girlfriend ) probably looking at borrowing 120K for the mortgage , the loan I have now had little to no effect on mortgage application based on it being a joint application with both incomes, and I very much agree between car and house but my job involves a lot of travel so it also comes down to needing that car to provide the means of getting the house0
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I'd have thought an £18K loan on a £21K salary was unlikely, even without another loan on the go.0
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Already been approved for a few, borrowing 18K over 4 years you're basically borrowing 18K to 84K , pulling out about 1500 per month after tax, take away about 350 per month, would still leave me with more or less basic wage so getting approved for it hasn't been the issue0
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