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  • FIRST POST
    • essex.cyclist
    • By essex.cyclist 5th Oct 16, 12:20 PM
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    essex.cyclist
    What do banks consider a large loan?
    • #1
    • 5th Oct 16, 12:20 PM
    What do banks consider a large loan? 5th Oct 16 at 12:20 PM
    Hi all


    Looking at a £10k loan but could probably reduce that a little if needs be, maybe down to £7.5 / 8k.


    Is this sort of difference of an relevance to the bank?


    Do they consider £10k as a big loan to try and be approved for?


    Thanks
Page 2
    • essex.cyclist
    • By essex.cyclist 6th Oct 16, 12:25 PM
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    essex.cyclist
    I ran up a similar amount of debt on credit cards for a similar reason. But the difference was that I already had decent lifetime rates on those cards and I wanted more flexibility in repaying the money than I would get from adding more to the mortgage. At that time, the credit cards were the cheapest way of borrowing.

    If you are credit worthy you should be able to make use of the extremely good balance transfer offers available which would allow you to continue to borrow that money at a much lower rate.
    Originally posted by jamesperrett


    Thanks for the comment.


    I would agree, but my primary reason for the loan is to pay off a family loan where my parents could do with the money by next Spring.


    Doing so would allow me to pay off my credit cards from standard income, with the loan payments coming out of my bonuses.


    Unfortunately my bonuses are not big enough to pay off my family loan by next Spring and it's causing me difficulty with my regular income.


    I have a very clear plan in my mind and have had no problem clearing debt and saving money previously.
    • Candyapple
    • By Candyapple 6th Oct 16, 1:39 PM
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    Candyapple

    I think I'll apply and see how it goes - thankfully it's not a disaster if I am rejected. Recently re-mortgaged, so credit check won't impact on me, I don't think.
    Originally posted by essex.cyclist
    Did you make the full application? Were you declined or approved and at what amount/rate?
    • essex.cyclist
    • By essex.cyclist 6th Oct 16, 1:46 PM
    • 58 Posts
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    essex.cyclist
    Did you make the full application? Were you declined or approved and at what amount/rate?
    Originally posted by Candyapple


    Will let you know next week.
    • enthusiasticsaver
    • By enthusiasticsaver 6th Oct 16, 5:17 PM
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    enthusiasticsaver
    Your original question was whether the bank would be more likely to approve £7-£8k rather than £10k and I don't think it would make a difference. They will either consider you credit worthy or overcommitted but a £2k difference is irrelevant and as your family loan won't show up they won't have a full picture anyway. Paying a loan off over 5 years will cost you more in the long run though.
    Debt and mortgage free and saving for early retirement
    • enthusiasticsaver
    • By enthusiasticsaver 6th Oct 16, 5:23 PM
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    enthusiasticsaver
    You obviously don't like being challenged on this but a large mortgage, £10-£15k unsecured debt plus a family loan in spite of 2 good salaries screams warning signs to me even though you have explained it is for house renovations. What would you do if either of you lost your jobs with that level of debt?
    Debt and mortgage free and saving for early retirement
    • essex.cyclist
    • By essex.cyclist 6th Oct 16, 5:32 PM
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    essex.cyclist
    You obviously don't like being challenged on this but a large mortgage, £10-£15k unsecured debt plus a family loan in spite of 2 good salaries screams warning signs to me even though you have explained it is for house renovations. What would you do if either of you lost your jobs with that level of debt?
    Originally posted by enthusiasticsaver

    Thanks for your first answer, which addresses my question.


    Regarding this latest post, I could go into details about why this isn't a big concern, but I'd rather.


    Suffice to say, there's no chance of me losing my job and it won't be long before I am bringing home a lot more money than I am now.


    We have spent the best part of £25k this year on our house. This won't continue and we can live within our means.


    However, thanks for your concern. I don't mind being challenged on this but some people on here think they've seen it all and use that to make judgements that they're not in a position to make.


    All the best.
    • takman
    • By takman 7th Oct 16, 11:16 PM
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    takman
    If your on 45k a year plus have a partner who is on a good wage then why didn't you have that 25k in savings to spend on improvements?.
    The fact that you have no savings 12k of debt and owe money to your parents shows you have poor money management (no matter how much you deny it). Even if you didn't have any savings if you had planned to spend this money why didn't you put it on 0% credit cards?. You really need to have a good look at your finances because something is definitely wrong!.
    • essex.cyclist
    • By essex.cyclist 10th Oct 16, 9:35 AM
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    essex.cyclist
    If your on 45k a year plus have a partner who is on a good wage then why didn't you have that 25k in savings to spend on improvements?.
    The fact that you have no savings 12k of debt and owe money to your parents shows you have poor money management (no matter how much you deny it). Even if you didn't have any savings if you had planned to spend this money why didn't you put it on 0% credit cards?. You really need to have a good look at your finances because something is definitely wrong!.
    Originally posted by takman


    We bought the house 2 years ago with a whopping deposit, so that's where the savings went.


    In your opinion I have poor money management - you're entitled to it, but you're basing your opinion on a short period of my life without knowing anything about the years preceding those and my personal circumstance in the coming 5-10 years.


    Because of that, I think your comments are ignorant.


    Too many people on here seem to want to give their opinion on everything.


    I asked clear questions about specific points I was interested in - thanks to those who have actually bothered to answer those questions, rather than ignorantly sit in judgement.
    • takman
    • By takman 10th Oct 16, 10:01 AM
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    takman
    We bought the house 2 years ago with a whopping deposit, so that's where the savings went.


    In your opinion I have poor money management - you're entitled to it, but you're basing your opinion on a short period of my life without knowing anything about the years preceding those and my personal circumstance in the coming 5-10 years.


    Because of that, I think your comments are ignorant.


    Too many people on here seem to want to give their opinion on everything.


    I asked clear questions about specific points I was interested in - thanks to those who have actually bothered to answer those questions, rather than ignorantly sit in judgement.
    Originally posted by essex.cyclist
    Yes but like I said even if you didn't have any savings then even with a small amount of planning you could have applied for a 0% purchase card and wouldn't have to pay any interest on it. So with a small amount of panning it would have been an interest free debt so you wouldn't now have to be looking for a loan.

    Also if you bought the house 2 years ago you could have been saving money since then, so where has that money gone?.

    You may think I'm ignorant but the facts are you didn't plan for this expense so had no sabings set aside. You then overspent and had to put it on a credit card charging interest. Your now trying to find a loan to pay it off. This shows a lack of of financial planning which is poor money management. You may disagree which is fine but if you just sit there in denial it won't effect me it will only effect you!.
    • poppasmurf_bewdley
    • By poppasmurf_bewdley 10th Oct 16, 10:57 AM
    • 4,780 Posts
    • 4,896 Thanks
    poppasmurf_bewdley
    Yes but like I said even if you didn't have any savings then even with a small amount of planning you could have applied for a 0% purchase card and wouldn't have to pay any interest on it. So with a small amount of panning it would have been an interest free debt so you wouldn't now have to be looking for a loan.

    Also if you bought the house 2 years ago you could have been saving money since then, so where has that money gone?.

    You may think I'm ignorant but the facts are you didn't plan for this expense so had no sabings set aside. You then overspent and had to put it on a credit card charging interest. Your now trying to find a loan to pay it off. This shows a lack of of financial planning which is poor money management. You may disagree which is fine but if you just sit there in denial it won't effect me it will only effect you!.
    Originally posted by takman
    I think you have just summed up the situation very well. The only person who will be hurt is himself (and his family). But what frightens me even more are the ominous words "without knowing anything about the years preceding those and my personal circumstance in the coming 5-10 years." Who on earth can know what will happen next month or next year let alone in the coming 5-10 years??? David Cameron is still wondering how he got it all so wrong and he thought he had it all sewed up!
    There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O.S. Nock
    • essex.cyclist
    • By essex.cyclist 10th Oct 16, 12:18 PM
    • 58 Posts
    • 14 Thanks
    essex.cyclist
    Yes but like I said even if you didn't have any savings then even with a small amount of planning you could have applied for a 0% purchase card and wouldn't have to pay any interest on it. So with a small amount of panning it would have been an interest free debt so you wouldn't now have to be looking for a loan.

    Also if you bought the house 2 years ago you could have been saving money since then, so where has that money gone?.

    You may think I'm ignorant but the facts are you didn't plan for this expense so had no sabings set aside. You then overspent and had to put it on a credit card charging interest. Your now trying to find a loan to pay it off. This shows a lack of of financial planning which is poor money management. You may disagree which is fine but if you just sit there in denial it won't effect me it will only effect you!.
    Originally posted by takman


    1. If you'd bothered reading my posts before jumping to your own conclusion, you'd see that I am getting the loan to pay off a family loan because they need the money, so the 0% option wasn't something I'd overlooked.


    2. The last two years have been spending money on the house. That process is now complete. That's why we haven't been saving.


    3. My credit cards are mainly 0% and I'm not using the loan to pay them off - I am paying off a family loan and have a plan in place to pay the credit cards off by next summer.


    I've not managed my money well this year but that is a short term issue on my part and not part of a wider problem.


    The fact you haven't even read my posts shows your ignorance.


    My advice to you would be to do that in future and maybe focus on giving advice that people have asked for, not advice that they haven't, based on things you don't know about them.
    • essex.cyclist
    • By essex.cyclist 10th Oct 16, 12:19 PM
    • 58 Posts
    • 14 Thanks
    essex.cyclist
    I think you have just summed up the situation very well. The only person who will be hurt is himself (and his family). But what frightens me even more are the ominous words "without knowing anything about the years preceding those and my personal circumstance in the coming 5-10 years." Who on earth can know what will happen next month or next year let alone in the coming 5-10 years??? David Cameron is still wondering how he got it all so wrong and he thought he had it all sewed up!
    Originally posted by poppasmurf_bewdley


    The fact you have to ask that question shows you know very little about my life.


    I wouldn't mind these comments if it's what I had come on here to discuss, but it's not. It's ignorant people butting into a conversation with irrelevant responses based on little more than assumption and an 'I know it all because I've seen it all before attitude'.
    • takman
    • By takman 10th Oct 16, 12:50 PM
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    takman
    1. If you'd bothered reading my posts before jumping to your own conclusion, you'd see that I am getting the loan to pay off a family loan because they need the money, so the 0% option wasn't something I'd overlooked.


    2. The last two years have been spending money on the house. That process is now complete. That's why we haven't been saving.


    3. My credit cards are mainly 0% and I'm not using the loan to pay them off - I am paying off a family loan and have a plan in place to pay the credit cards off by next summer.


    I've not managed my money well this year but that is a short term issue on my part and not part of a wider problem.


    The fact you haven't even read my posts shows your ignorance.


    My advice to you would be to do that in future and maybe focus on giving advice that people have asked for, not advice that they haven't, based on things you don't know about them.
    Originally posted by essex.cyclist
    I did forget that that you were just paying off the family loan and not some of the credit card aswell because I read it the other day and came back to it. But that still doesn't stop you from applying for a 0% money transfer card. But you do say in point 3 it's not all interest free so I would assume you would pay that off aswell if you sourced funds at a lower interest rate.

    But what you seem to be forgetting in all this is that I can only give my opinion on what you have said on here so I'm happy to make assumptions based on other similar posts on this forum.
    Also this is a public forum and nobody on here is getting paid to give specific answers and advice in reply to your questions. So I'm definetly not giving advice I'm just posting my option of your situation and seeing how you reply.
    So if you want advice in a professional manner then you need to go to a service such as CAB or pay for it. But if you come on here to get it for free then you can't expect to control what replies you get!.
    • essex.cyclist
    • By essex.cyclist 10th Oct 16, 12:57 PM
    • 58 Posts
    • 14 Thanks
    essex.cyclist
    I did forget that that you were just paying off the family loan and not some of the credit card aswell because I read it the other day and came back to it. But that still doesn't stop you from applying for a 0% money transfer card. But you do say in point 3 it's not all interest free so I would assume you would pay that off aswell if you sourced funds at a lower interest rate.

    But what you seem to be forgetting in all this is that I can only give my opinion on what you have said on here so I'm happy to make assumptions based on other similar posts on this forum.
    Also this is a public forum and nobody on here is getting paid to give specific answers and advice in reply to your questions. So I'm definetly not giving advice I'm just posting my option of your situation and seeing how you reply.
    So if you want advice in a professional manner then you need to go to a service such as CAB or pay for it. But if you come on here to get it for free then you can't expect to control what replies you get!.
    Originally posted by takman


    You've replied to something that I didn't ask and you've done it with a response based on both assumption and incorrect information through not reading properly.


    Plenty of people have given great advice on these forums to me - specifically based on what I asked, so it has been worth my time in coming here. You could perhaps learn from those people and how they responded.


    It is a public forum, you're correct. And on that basis, I reserve the right to tell you that your response was ignorant.
    • Candyapple
    • By Candyapple 10th Oct 16, 1:18 PM
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    • 1,174 Thanks
    Candyapple
    OP - out of interest, who is the 3.3% loan you've been quoted with? Sainsburys? M&S?

    This article may be useful to you, especially if you bank with Nationwide:
    http://www.moneysavingexpert.com/news/loans/2016/01/ms-launches-new-cheapest-ever-33-loan
    • muhandis
    • By muhandis 10th Oct 16, 1:24 PM
    • 231 Posts
    • 86 Thanks
    muhandis
    Completely agree with your comment.

    Wow, what a bunch of judgmental folk there are on here. I wish people would stick to answering the OP's question/s and not veer into labelling, condemning and judging the OP while knowing little or nothing of his financial circumstances, family finances, history with debt, sources of income, etc.


    If you don't have anything that could answer the OP's query, you could you know just jog on to the next thread. And if you do want to alert the OP to anything of concern (remember, it's only your OPINION), there is the right way to do it - in a polite and non-judgemental way. You can be direct, to the point AND put your opinion across in a polite/professional manner.

    The very worst are those that pop up with a one-liner saying (they're there on every kind of financial thread) "You earn £XXX, how come you only have savings of £Y or how come you have debt of £Z"

    Good luck with the loan and good on you for replying to those ignorant comments.

    Too many people on here seem to want to give their opinion on everything.

    I asked clear questions about specific points I was interested in - thanks to those who have actually bothered to answer those questions, rather than ignorantly sit in judgement.
    Originally posted by essex.cyclist
    • essex.cyclist
    • By essex.cyclist 10th Oct 16, 1:45 PM
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    • 14 Thanks
    essex.cyclist
    OP - out of interest, who is the 3.3% loan you've been quoted with? Sainsburys? M&S?

    This article may be useful to you, especially if you bank with Nationwide:
    http://www.moneysavingexpert.com/news/loans/2016/01/ms-launches-new-cheapest-ever-33-loan
    Originally posted by Candyapple


    Thanks, that is interesting - Zopa seemed to be the most competitive and Nationwide was almost an equivalent, but as they're my bank I was tempted to speak with them first.


    I'll make a call on it this week I think.
    • essex.cyclist
    • By essex.cyclist 10th Oct 16, 1:59 PM
    • 58 Posts
    • 14 Thanks
    essex.cyclist
    Completely agree with your comment.

    Wow, what a bunch of judgmental folk there are on here. I wish people would stick to answering the OP's question/s and not veer into labelling, condemning and judging the OP while knowing little or nothing of his financial circumstances, family finances, history with debt, sources of income, etc.


    If you don't have anything that could answer the OP's query, you could you know just jog on to the next thread. And if you do want to alert the OP to anything of concern (remember, it's only your OPINION), there is the right way to do it - in a polite and non-judgemental way. You can be direct, to the point AND put your opinion across in a polite/professional manner.

    The very worst are those that pop up with a one-liner saying (they're there on every kind of financial thread) "You earn £XXX, how come you only have savings of £Y or how come you have debt of £Z"

    Good luck with the loan and good on you for replying to those ignorant comments.
    Originally posted by muhandis


    Thank you - nice to know it's not just me!


    All the best to you too.
    • takman
    • By takman 10th Oct 16, 3:47 PM
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    • 1,179 Thanks
    takman
    You've replied to something that I didn't ask and you've done it with a response based on both assumption and incorrect information through not reading properly.


    Plenty of people have given great advice on these forums to me - specifically based on what I asked, so it has been worth my time in coming here. You could perhaps learn from those people and how they responded.


    It is a public forum, you're correct. And on that basis, I reserve the right to tell you that your response was ignorant.
    Originally posted by essex.cyclist
    I really don't think you understand the point I am making. I didn't want to reply directly to your questions because that has already been answered by previous posters. I decided to make some assumptions about your financial situation and see what your reply would be. If everyone just gave polite and professional replies directly answering any questions they were asked without any debate then this forum would be very boring.

    But if you want an answer to your original question from me then here it is:

    When taking out a loan you want to take out the smallest amount you need so you pay the least interest. So if you can do with 7.5k then only take a loan for 7.5k (but if you go lower than that the loan will have a a slightly higher interest rate).
    But considering your parents don't need the money back until next spring then your best course of action would be to pay them as much money as you can from now until then. Then a few weeks before they need the money back apply for a interest free money transfer credit card and use the money from that card to pay them the rest. This will result in the lowest interest charges possible.

    How about that?
    • essex.cyclist
    • By essex.cyclist 11th Oct 16, 9:29 AM
    • 58 Posts
    • 14 Thanks
    essex.cyclist
    I really don't think you understand the point I am making. I didn't want to reply directly to your questions because that has already been answered by previous posters. I decided to make some assumptions about your financial situation and see what your reply would be. If everyone just gave polite and professional replies directly answering any questions they were asked without any debate then this forum would be very boring.

    But if you want an answer to your original question from me then here it is:

    When taking out a loan you want to take out the smallest amount you need so you pay the least interest. So if you can do with 7.5k then only take a loan for 7.5k (but if you go lower than that the loan will have a a slightly higher interest rate).
    But considering your parents don't need the money back until next spring then your best course of action would be to pay them as much money as you can from now until then. Then a few weeks before they need the money back apply for a interest free money transfer credit card and use the money from that card to pay them the rest. This will result in the lowest interest charges possible.

    How about that?
    Originally posted by takman


    "If everyone just gave polite and professional replies directly answering any questions they were asked without any debate then this forum would be very boring."


    This is a remarkable thing to say.


    This isn't a forum for entertainment. It's to help people in need.


    It wouldn't be boring, if everyone gave polite and professional replies - it would be useful, mature and enjoyable.


    You made a mistake. Time to acknowledge it and move on, and hopefully change the way you approach things in future.
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