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  • FIRST POST
    • maxthepolarbear
    • By maxthepolarbear 21st Mar 17, 7:39 PM
    • 45Posts
    • 3Thanks
    maxthepolarbear
    Question on AA loan
    • #1
    • 21st Mar 17, 7:39 PM
    Question on AA loan 21st Mar 17 at 7:39 PM
    I'm hoping to borrow a loan to buy a parking space. The parking space is going to be joint to my existing contract to my flat which I already own. Most lenders say they will not lend money for the purchase of a property. I'm wondering if this count as a purchase of a property?

    My specific question is that AA doesn't seem to have that restriction. Does that mean I could use the loan to buy the parking space (I'll also put down a deposit from my saving). If so should I put this under "home improvement" for the loan purpose? Arguably it can be counted as home improvement as I already have a flat (similar to doing up a garage if you have a house)?

    Thanks.
Page 1
    • maxthepolarbear
    • By maxthepolarbear 21st Mar 17, 7:41 PM
    • 45 Posts
    • 3 Thanks
    maxthepolarbear
    • #2
    • 21st Mar 17, 7:41 PM
    • #2
    • 21st Mar 17, 7:41 PM
    On AA website it says "
    How can the loan be used?

    A personal loan provides you with a lump sum which can be used to spread the cost of more expensive items, such as a home improvements or a new car, over a pre-agreed term. It is not suitable to fund day-to-day expenditure or for use as a deposit for other credit arrangements such as a deposit for a house."
    • Shakin Steve
    • By Shakin Steve 21st Mar 17, 8:00 PM
    • 1,059 Posts
    • 766 Thanks
    Shakin Steve
    • #3
    • 21st Mar 17, 8:00 PM
    • #3
    • 21st Mar 17, 8:00 PM
    You could, maybe, stretch this to the point of adding to the value of your property. As such, maybe a small mortgage on the flat?
    I came into this world with nothing and I've got most of it left.
    • maxthepolarbear
    • By maxthepolarbear 21st Mar 17, 8:40 PM
    • 45 Posts
    • 3 Thanks
    maxthepolarbear
    • #4
    • 21st Mar 17, 8:40 PM
    • #4
    • 21st Mar 17, 8:40 PM
    Will my solicitor care the condition that is attached to the loan?
    • markie49
    • By markie49 18th Apr 17, 8:16 PM
    • 13 Posts
    • 1 Thanks
    markie49
    • #5
    • 18th Apr 17, 8:16 PM
    • #5
    • 18th Apr 17, 8:16 PM
    I want to consolidate some debts, have a good credit score, have one informal payment plan on file, Clear Score recommended to me that I had an 80% chance of a loan with M&S. I applied to M&S who did a soft search and told me I was eligible so I went ahead with application and was refused- how is this? Clear Score are now telling me that I have a 70% chance of getting a loan with the AA- where am I going wrong? I cant contact Clear Score online either to discuss
    • zx81
    • By zx81 18th Apr 17, 8:33 PM
    • 14,128 Posts
    • 14,816 Thanks
    zx81
    • #6
    • 18th Apr 17, 8:33 PM
    • #6
    • 18th Apr 17, 8:33 PM
    80% chance of acceptance means 20% chance of rejection. You were in the 20%.

    What do your credit files show?
    • DCFC79
    • By DCFC79 18th Apr 17, 8:48 PM
    • 30,290 Posts
    • 19,160 Thanks
    DCFC79
    • #7
    • 18th Apr 17, 8:48 PM
    • #7
    • 18th Apr 17, 8:48 PM
    I want to consolidate some debts, have a good credit score, have one informal payment plan on file, Clear Score recommended to me that I had an 80% chance of a loan with M&S. I applied to M&S who did a soft search and told me I was eligible so I went ahead with application and was refused- how is this? Clear Score are now telling me that I have a 70% chance of getting a loan with the AA- where am I going wrong? I cant contact Clear Score online either to discuss
    Originally posted by markie49
    You should really start your own thread and not hijack someone elses thread.
    Can people stop loaning money/being a guarator to family/friends, it rarely ends well and you lose out as your money is gone or you get shafted with being a guarantor.
    • Caz3121
    • By Caz3121 18th Apr 17, 8:54 PM
    • 10,848 Posts
    • 7,076 Thanks
    Caz3121
    • #8
    • 18th Apr 17, 8:54 PM
    • #8
    • 18th Apr 17, 8:54 PM
    Given that your report will show your arrangement to pay, not paying the contractual loan amount due to not being affordable, you will likely struggle getting further borrowing (as they will consider this additional to your current debts as there is no guarantee you will use the loan to pay these off)

    Consolidation rarely works. Have a look at the DebtFree board for some friendly help on addressing your debt rather than focussing on moving it around

    Time will heal your history. Do you know how the loan will report you once the arrangement stops? have you built up arrears or just added additional time onto the term?
    • zx81
    • By zx81 18th Apr 17, 9:17 PM
    • 14,128 Posts
    • 14,816 Thanks
    zx81
    • #9
    • 18th Apr 17, 9:17 PM
    • #9
    • 18th Apr 17, 9:17 PM
    I had a feeling we'd been round this particular topic before - this is why you're not going to get a consolidation loan -

    http://forums.moneysavingexpert.com/showthread.php?p=72384105#post72384105
    • markie49
    • By markie49 18th Apr 17, 9:25 PM
    • 13 Posts
    • 1 Thanks
    markie49
    Thank you zx81 sorry for posting again- I am new to all this stuff and find it hard to find my original posts- I'm just looking advice
    • zx81
    • By zx81 18th Apr 17, 9:26 PM
    • 14,128 Posts
    • 14,816 Thanks
    zx81
    Just click on your own user name in any of your posts, and you can find your previous posts from there (and other information).
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