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  • FIRST POST
    • angemcl
    • By angemcl 20th Apr 17, 9:01 PM
    • 1Posts
    • 0Thanks
    angemcl
    secured loans with poor credit
    • #1
    • 20th Apr 17, 9:01 PM
    secured loans with poor credit 20th Apr 17 at 9:01 PM
    Hi all,

    I am looking for any advice regarding securing a secured loan with a poor credit history.

    Approx 100k equity on my house, 10 yrs left on repayment mortgage. Looking for Approx £20k to consolidate and clear debts into one payment. Halifax current mortgage provider and not being helpful in terms of additional borrowing.

    Any advice on lenders that are willing to work with poor credit history. Household annual income £60k. Current mortgage payment 1070per month.

    All advice appreciated.
    Last edited by angemcl; 20-04-2017 at 9:02 PM. Reason: typo
Page 1
    • ricky_v
    • By ricky_v 20th Apr 17, 9:18 PM
    • 231 Posts
    • 115 Thanks
    ricky_v
    • #2
    • 20th Apr 17, 9:18 PM
    • #2
    • 20th Apr 17, 9:18 PM
    Have a look around on the Debt-Free Wannabe board and post a statement of affairs (found at http://stoozing.com/calculator/soa.php) on there to get advice on how to cut back expenditure. Consolidation rarely works unless you tackle your expenditure.

    With £60k household income, you can easily clear the £20k debt without resorting to secured loans, plus the chances are that it will be against your mortage's T+Cs to put additional charges on the property.

    Good Luck!
    • DCFC79
    • By DCFC79 20th Apr 17, 9:38 PM
    • 29,518 Posts
    • 18,661 Thanks
    DCFC79
    • #3
    • 20th Apr 17, 9:38 PM
    • #3
    • 20th Apr 17, 9:38 PM
    Consolidating just moves it from A to B and may extend the term your lumbered with the loan. Its not a wise move to turn unsecured debt into secured against your home but go ahead if you like.

    If you lose your job or something happens meaning your down to 1 income your home will be at risk.
    Je Suis Charlie
    • sourcrates
    • By sourcrates 20th Apr 17, 10:20 PM
    • 11,155 Posts
    • 10,826 Thanks
    sourcrates
    • #4
    • 20th Apr 17, 10:20 PM
    • #4
    • 20th Apr 17, 10:20 PM
    My advice, don't do it, it's akin to jumping out of the frying pan, into the fire.

    Consolidation is rarely a good option, (take it from one who knows from very painful personal experience) secured loans for consolidation are utter madness, never, ever pay off debt with more debt, especially secured debt.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • bris
    • By bris 20th Apr 17, 11:59 PM
    • 6,647 Posts
    • 5,693 Thanks
    bris
    • #5
    • 20th Apr 17, 11:59 PM
    • #5
    • 20th Apr 17, 11:59 PM
    60k income and 20k debt with a mortgage of just 1k. You don't need a loan you just need to cut back, that debt could be written off in 2 years with that income.


    Pay the most to the highest interest first to clear it quicker. Looking for additional borrowing is just keeping within the vicious debt circle.
    • StopIt
    • By StopIt 21st Apr 17, 8:37 AM
    • 670 Posts
    • 614 Thanks
    StopIt
    • #6
    • 21st Apr 17, 8:37 AM
    • #6
    • 21st Apr 17, 8:37 AM
    You're not clearing your debts, you're escalating them.


    Never, EVER think that changing unsecured debt to secured debt is a good idea. it's crazy.


    Take Halifax being reticent as a blessing and get to the DFW boards ASAP.
    • MEM62
    • By MEM62 21st Apr 17, 12:19 PM
    • 1,236 Posts
    • 881 Thanks
    MEM62
    • #7
    • 21st Apr 17, 12:19 PM
    • #7
    • 21st Apr 17, 12:19 PM
    60k income and 20k debt with a mortgage of just 1k. You don't need a loan you just need to cut back, that debt could be written off in 2 years with that income.


    Pay the most to the highest interest first to clear it quicker. Looking for additional borrowing is just keeping within the vicious debt circle.
    Originally posted by bris
    +1 on that advice.

    You do not need further borrowing you just need to control your spending. Be grateful your lender is reluctant to stick this on your mortgage. You would regret doing so.
    • Tarambor
    • By Tarambor 21st Apr 17, 4:52 PM
    • 870 Posts
    • 579 Thanks
    Tarambor
    • #8
    • 21st Apr 17, 4:52 PM
    • #8
    • 21st Apr 17, 4:52 PM
    So....

    Annual income £60,000

    Mortgage repayments £12,840

    Assume £12,000 a year for living costs in total including food, council tax, gas and electric, water, phone, fuel etc but excluding borrowing. If your outgoings excluding your borrowing and mortgage is higher than that you need to take a long hard look at your lifestyle.

    Leaves just over £35,000 a year to repay £20k of debt.

    Tell us again why you need to borrow £20k to pay £20k of debt? Just pay off the debts as advised above and be clear in less than a year. It does mean you are going to have to do without some of the utter crap you've been blowing your money on for the last several years but clearly as you couldn't afford to then maybe it may turn out to be a good lesson in living within your means and save you getting back where you are now.
    • dresdendave
    • By dresdendave 21st Apr 17, 6:07 PM
    • 597 Posts
    • 671 Thanks
    dresdendave
    • #9
    • 21st Apr 17, 6:07 PM
    • #9
    • 21st Apr 17, 6:07 PM
    So....

    Annual income £60,000

    Mortgage repayments £12,840

    Assume £12,000 a year for living costs in total including food, council tax, gas and electric, water, phone, fuel etc but excluding borrowing. If your outgoings excluding your borrowing and mortgage is higher than that you need to take a long hard look at your lifestyle.

    Leaves just over £35,000 a year to repay £20k of debt.

    Tell us again why you need to borrow £20k to pay £20k of debt? Just pay off the debts as advised above and be clear in less than a year. It does mean you are going to have to do without some of the utter crap you've been blowing your money on for the last several years but clearly as you couldn't afford to then maybe it may turn out to be a good lesson in living within your means and save you getting back where you are now.
    Originally posted by Tarambor

    Although I agree with the gist of your post, I expect £60k is the salarie(s) before income tax and NI so your calculation of £35k disposable income is somewhat inflated.
    • Tarambor
    • By Tarambor 22nd Apr 17, 9:05 PM
    • 870 Posts
    • 579 Thanks
    Tarambor
    Although I agree with the gist of your post, I expect £60k is the salarie(s) before income tax and NI so your calculation of £35k disposable income is somewhat inflated.
    Originally posted by dresdendave
    OK....

    Annual net income £42597
    Mortgage repayments £12840
    Living costs £12000

    Leaves over £17500 a year to pay a £20k debt.

    Why the hell would someone pay 4-5 years more interest on a debt they could clear inside 15 months?
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