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  • FIRST POST
    • savingfor
    • By savingfor 9th Jan 18, 9:34 PM
    • 3Posts
    • 1Thanks
    savingfor
    6K loan towards flat purchase
    • #1
    • 9th Jan 18, 9:34 PM
    6K loan towards flat purchase 9th Jan 18 at 9:34 PM
    Hello

    I am wondering what my chances are of getting a loan. It's unlikely, but is it a total non-starter?

    The background:

    I am finally in the fortunate position of being able to buy somewhere to live. It means moving to a new city. I have 50K in cash, and I am now saving for buying costs. In order to buy in a slightly less gritty area I think I need another 5 to 6K.

    However, I don't earn very much. I only have the 50K thanks to living with a parent for the last five years and saving 20K plus getting an inheritance. I have been very lucky. In addition, my credit history is not great, since I have defaults from a credit card from nearly six years ago when I was unemployed/in very erratic zero hours low paid work. I know there's six years before your credit history is clean again, but is that six years since paying off the debt or six years since the date of default? Because I paid off the debt about five years ago.

    I don't want to wait and save for another year. I really have put my life on hold for a long time and I'm not getting any younger. So if I can't get a loan I will just buy where I can. But I thought I might chance my arm at borrowing a small amount. Is it a total non-starter? Should I talk to my bank? I will need to leave my job to move, so that is a headache in itself. Ideally I would rent in the new city first, but that might preclude the loan. I do earn a small amount online as well, which I can continue to do, but that is just enough to cover my expenses while I move, pay rent on a room for a few months and look for a job.

    I'm guessing I can't get a mortgage for such a small amount and I'm not mortgage worthy anyway. I think I am willing to take the risk of paying back the loan, because I won't be paying rent or mortgage and the repayments will be a lot less than that. I will have to pay all bills on my own for the first time ever, and put money aside for maintenance etc. I know I'm probably just being greedy.
Page 2
    • PeacefulWaters
    • By PeacefulWaters 11th Jan 18, 12:42 PM
    • 7,527 Posts
    • 9,410 Thanks
    PeacefulWaters
    Most of the M62 corridor, South Yorkshire, Lancashire, North West, North East, Liverpool, Stoke on Trent. You can buy houses in Hull for £30k.
    Originally posted by Tarambor
    Made a small amendment.
    • NineDeuce
    • By NineDeuce 11th Jan 18, 1:46 PM
    • 672 Posts
    • 581 Thanks
    NineDeuce
    Thank you for your suggestion however I feel I am capable of entering a debate or discussion, for example in post 3 where I provided some (hopefully) useful advice to the OP.

    You joined the discussion seven posts later with the perfectly understandable assumption that the 50K was their deposit. I politely advised in post 11 that I believed the £50K was their intended purchase price and not their deposit.

    For whatever reason since then you have decided that rather than accepting that you may have simply misunderstood the original post based on the evidence from the OP which I re-quoted in post 15, you would instead focus on demanding I provide evidence of house prices across the UK in order to disprove my assumption. Evidence which I have since provided.

    Until the OP returns and clarifies their situation we will remain at an impasse on this matter, so I will leave this thread for now and leave the other forum members to draw their own opinions.
    Originally posted by vacheron
    I entered the discussion with a question, regardless of how many posts preceded. You provided Middlesbrough, and nothing else.

    You seem to be more bothered about me than the actual discussion....
    • Herzlos
    • By Herzlos 11th Jan 18, 2:57 PM
    • 6,298 Posts
    • 5,685 Thanks
    Herzlos
    List of cities where you can buy a place for £50k please...
    Originally posted by NineDeuce
    You entered the discussion with a sarcastic and dismissive post that had no relevance, and wanted people to run about and convince you of something you could have done yourself.

    The OP has already found a city to move to with £50k property, so they don't care if you need it proven. You still haven't added anything to this discussion beyond taking it wildy off topic.


    In an attempt to bring it back on-topic; you should be able to get a £6k mortgage, or get a slightly bigger mortgage (if that's the minimum) and overpay it down to nearly £6k. It's pretty low risk for a mortgage lender because you've got £50k equity.
    • bertiewhite
    • By bertiewhite 11th Jan 18, 3:07 PM
    • 753 Posts
    • 797 Thanks
    bertiewhite
    Getting back on topic - why not ask for a car loan and then decide you'd like to put it towards a flat instead?

    Yes it's dishonest but I've never known a bank to want to see the car you've bought.
    • NineDeuce
    • By NineDeuce 11th Jan 18, 3:07 PM
    • 672 Posts
    • 581 Thanks
    NineDeuce
    You entered the discussion with a sarcastic and dismissive post that had no relevance, and wanted people to run about and convince you of something you could have done yourself.

    The OP has already found a city to move to with £50k property, so they don't care if you need it proven. You still haven't added anything to this discussion beyond taking it wildy off topic.


    In an attempt to bring it back on-topic; you should be able to get a £6k mortgage, or get a slightly bigger mortgage (if that's the minimum) and overpay it down to nearly £6k. It's pretty low risk for a mortgage lender because you've got £50k equity.
    Originally posted by Herzlos
    Yeah, wildly off topic (not wildy, that might compromise your Google search if you spell it like that).

    Asking about what cities you can get a property for £50k in a post where the OP enquires about cities where you can get a property for £50k.

    All you needed to do was list a few but you were more bothered about my so-called sarcastic attitude, rather than list some cities, apart from Middlesbrough.

    Its good however that you attempted to bring it back on to topic at the end here. It appears that you have unchipped that shoulder of yours to some extent.
    • bertiewhite
    • By bertiewhite 11th Jan 18, 3:26 PM
    • 753 Posts
    • 797 Thanks
    bertiewhite
    Asking about what cities you can get a property for £50k in a post where the OP enquires about cities where you can get a property for £50k.
    Originally posted by NineDeuce
    I don't think the OP did ask that - they asked about the chances of getting a loan of £6K for a flat purchase.
    • vacheron
    • By vacheron 11th Jan 18, 3:30 PM
    • 753 Posts
    • 666 Thanks
    vacheron
    You entered the discussion with a sarcastic and dismissive post that had no relevance, and wanted people to run about and convince you of something you could have done yourself.

    The OP has already found a city to move to with £50k property, so they don't care if you need it proven. You still haven't added anything to this discussion beyond taking it wildy off topic.


    In an attempt to bring it back on-topic; you should be able to get a £6k mortgage, or get a slightly bigger mortgage (if that's the minimum) and overpay it down to nearly £6k. It's pretty low risk for a mortgage lender because you've got £50k equity.
    Originally posted by Herzlos

    Yeah, wildly off topic (not wildy, that might compromise your Google search if you spell it like that).

    Asking about what cities you can get a property for £50k in a post where the OP enquires about cities where you can get a property for £50k.

    All you needed to do was list a few but you were more bothered about my so-called sarcastic attitude, rather than list some cities, apart from Middlesbrough.

    Its good however that you attempted to bring it back on to topic at the end here. It appears that you have unchipped that shoulder of yours to some extent.
    Originally posted by NineDeuce

    The OP never once inquired about cities where you can get a property for £50K.
    You were the only person who ever asked that.

    Also you have replied to someone completely different believing them to be me.
    Last edited by vacheron; 11-01-2018 at 3:35 PM.
    • The rich buy assets.
    • The poor only have expenses.
    • The middle class buy liabilities they think are assets.
    Robert T. Kiyosaki
    • savingfor
    • By savingfor 11th Jan 18, 7:30 PM
    • 3 Posts
    • 1 Thanks
    savingfor
    OP here. Yes, the 50K would be the full purchase price. And yes, there are many regions in the UK where this is possible, if you are only looking at 1 bed flats, which I am. It is not however possible where I live now. I also know a few people living in this city and have been there, got a reasonable chance of work, which is more than I can say about many cheaper places in the UK. The problem is I would have to buy in one of the less salubrious parts of the city. Now it has become reality, I am getting nervous. And greedy.

    Yes, 20K in five years is not very impressive I know. But the inheritance was a game changer. Initially I was just saving not to be broke. I have been paying for food, bills, council tax, car. I will not have to have a car in the new place.

    So, I need to talk to a broker, and try and see if I can get a minimum mortgage, then pay down what is in excess of what I need? This is my takeaway so far. So I suppose I would have to move first in order to do this? Part of my issue is also wondering what order to do things in.
    • Senseicads
    • By Senseicads 12th Jan 18, 11:54 AM
    • 80 Posts
    • 44 Thanks
    Senseicads
    I think 20k in five years is impressive. I couldn’t save that amount!!! That’s 4K a year!!!
    • ViolaLass
    • By ViolaLass 12th Jan 18, 12:35 PM
    • 5,208 Posts
    • 7,213 Thanks
    ViolaLass

    So, I need to talk to a broker, and try and see if I can get a minimum mortgage, then pay down what is in excess of what I need? This is my takeaway so far. So I suppose I would have to move first in order to do this? Part of my issue is also wondering what order to do things in.
    Originally posted by savingfor
    You will get the mortgage when you buy the new house. Do you have a job in the new place?
    • Herzlos
    • By Herzlos 12th Jan 18, 2:37 PM
    • 6,298 Posts
    • 5,685 Thanks
    Herzlos
    So I suppose I would have to move first in order to do this?
    Originally posted by savingfor
    You should be able to get a mortgage offer (usually good for ~3 months) before you put an offer in on the house you're looking to buy. Just go to the bank with the listing and all the details, they'll give you an offer, you then buy the house and have the mortgage paid out on completion (via your solicitor).
    • PeacefulWaters
    • By PeacefulWaters 12th Jan 18, 5:33 PM
    • 7,527 Posts
    • 9,410 Thanks
    PeacefulWaters
    You should be able to get a mortgage offer (usually good for ~3 months) before you put an offer in on the house you're looking to buy. Just go to the bank with the listing and all the details, they'll give you an offer, you then buy the house and have the mortgage paid out on completion (via your solicitor).
    Originally posted by Herzlos
    Agreement in principle rather than a mortgage offer.
    • nic_c
    • By nic_c 12th Jan 18, 7:53 PM
    • 1,172 Posts
    • 667 Thanks
    nic_c
    You can get houses for £50K, in Nov 2017
    House in Leeds LS3 sold for 50K
    House in Bradford BD7 sold for £41K
    House in Sunderland SR4 sold for £42K
    could carry on.
    Mostly terrace houses but still houses.
    • fiisch
    • By fiisch 13th Jan 18, 12:13 AM
    • 229 Posts
    • 105 Thanks
    fiisch
    Impossible to say without knowing your credit worthiness, but a £6k loan is a relatively modest amount. I imagine for most people it is very possible, but there is a question as to what interest you'll pay (Zopa, for example, are one of the best loan providers out there right now with a rate of 3.0%, but there are providers who'll charge 20-odd % for the privilege of lending to customers with a lower credit score).

    If you have a poor credit score, you may be looking at significantly higher rates of interest, at which point you'll have to weigh up whether the extra interest is worth it to move early/to a better area.

    Alternatively, for £6k, might be worth looking at a 0% credit card? If you time it well, you get 3 months 0% spending which could be used to pay some of your moving costs... Again though, will be credit score permitting.

    In my opinion, if a "cheap" loan is not available, I'd be tempted to wait until you have saved the money, but there are plenty of providers to try....
    Save £6k in 2018: £100 / £6000
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