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  • FIRST POST
    • Jimmy_Boy
    • By Jimmy_Boy 17th Oct 17, 11:23 AM
    • 38Posts
    • 5Thanks
    Jimmy_Boy
    Loan for Property Purchase (not a mortgage)
    • #1
    • 17th Oct 17, 11:23 AM
    Loan for Property Purchase (not a mortgage) 17th Oct 17 at 11:23 AM
    Hi,

    There is quite a long back story to my question, but I'll keep it brief.

    I am in a position where I only need £8,000 to purchase my property and would like to get a loan for this amount, and pay it off over 30 months.

    1. Can you legally get a loan for this, or does it have to be a mortgage?

    2. The idea of a loan is more appealing to me due to being able to get it on a shorter term (mortgage is minimum of 5 years I believe), and the loan not being secured against my property. Am I right in thinking that this is a better option for me (if I can get a loan, not a mortgage)

    Thanks in advance.
Page 2
    • Candyapple
    • By Candyapple 24th Oct 17, 11:13 AM
    • 2,472 Posts
    • 1,848 Thanks
    Candyapple
    Im a little stuck on the best move to make going forward.

    Im thinking I need to put in a SAR request to CIFAS, and make a complaint about the personal advisor BEOFRE I do anything else? However, this screws me up in being able to get the funds in the required time.

    Like I said previously, I'm not sure if a CIFAS marker is immediate or it is 'live' the following month? And if I currently have NOT got a CIFAS marker, a mortgage application may give me a marker.

    Any advice welcome, I don't want to make things worse.
    Originally posted by Jimmy_Boy

    Yes to the above. CIFAS are pretty quick and usually get back to you within a week. Don't forget it's not only CIFAS but the other agencies mentioned previously too that you need to send a SAR to as well.

    I would assume once a company has informed CIFAS to add a marker against you that it would be live from that date, but I've never had one so can't say for certain.


    Check on noodle as I think it could well show up on there if you have got one on your file
    Originally posted by dawyldthing
    No it won't. If you have a CIFAS marker it won't show up on ANY of your credit files.
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • Jimmy_Boy
    • By Jimmy_Boy 24th Oct 17, 11:38 AM
    • 38 Posts
    • 5 Thanks
    Jimmy_Boy
    One thing I was a little concerned about is, the 'live' date of the marker, and obviously not knowing for sure when it is applied (immediately, or at beginning of month). I would of thought immediate, but do not know this for sure.

    But, lets say it was at beginning of month it is applied (like when you credit file refreshes). I send off a SAR request to CIFAS now, and they reply to me BEFORE month end, with no marker information. Then at beginning of month the marker is applied. I make decisions based on the understanding that I have no marker, but the marker was applied after the SAR request was processed.

    The other 'issue' is sending off these requests to 3 different companies who require official documentation. Due to the requirements of what they accept (driving license, passport etc...), I am going to have to send a SAR request to Company 1, wait for their reply and return of my documents to then send off to Company 2, and the same again for company 3.

    I don't currently have an in date passport, which is one of the accepted forms of identification. I was going to apply for one today / tomorrow, as I will be going on holiday near the end of next year, so its something that needs to be done anyway.

    What a pain in the backside this whole mess is.

    Thanks for all your help guys.
    • Candyapple
    • By Candyapple 24th Oct 17, 12:05 PM
    • 2,472 Posts
    • 1,848 Thanks
    Candyapple
    One thing I was a little concerned about is, the 'live' date of the marker, and obviously not knowing for sure when it is applied (immediately, or at beginning of month). I would of thought immediate, but do not know this for sure.

    But, lets say it was at beginning of month it is applied (like when you credit file refreshes). I send off a SAR request to CIFAS now, and they reply to me BEFORE month end, with no marker information. Then at beginning of month the marker is applied. I make decisions based on the understanding that I have no marker, but the marker was applied after the SAR request was processed.

    The other 'issue' is sending off these requests to 3 different companies who require official documentation. Due to the requirements of what they accept (driving license, passport etc...), I am going to have to send a SAR request to Company 1, wait for their reply and return of my documents to then send off to Company 2, and the same again for company 3.

    I don't currently have an in date passport, which is one of the accepted forms of identification. I was going to apply for one today / tomorrow, as I will be going on holiday near the end of next year, so its something that needs to be done anyway.

    What a pain in the backside this whole mess is.

    Thanks for all your help guys.
    Originally posted by Jimmy_Boy

    You do realise that credit files aren't refreshed once a month? They are refreshed daily because different lenders will be sending their updates to all 3 CRAs at different times of the month.

    They are only seen as being updated monthly to you, the data's owner, because that is all the CRAs are willing to give for free - 1 monthly status update.

    I would imagine the data would be live straight away with CIFAS.

    Also, CIFAS only require a photocopy of your photo ID. Do you not have a driving licence you could use instead? As for the other ID such as original bank statement, surely you have enough of those to be able to send to the other companies at the same time?
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • Jimmy_Boy
    • By Jimmy_Boy 24th Oct 17, 12:22 PM
    • 38 Posts
    • 5 Thanks
    Jimmy_Boy
    Yes, I have a drivers license to use. But when I looked at the different SAR request details of the various companies, there was an overlap of what was required. There was a List A and List B. I need to have another look and re-evaluate.

    I thought CRA's where updated monthly, and this is why I have seen it suggested that you essentially get a 1 month grace period - allowing you to get quotes from various companies in this timeframe without it drastically impacting your CRA, as the other companies don't see your other quotes / applications until the following month.

    Seems like I've potentially misunderstood the way that this works?

    Thanks again for your advice.
    • Candyapple
    • By Candyapple 24th Oct 17, 12:33 PM
    • 2,472 Posts
    • 1,848 Thanks
    Candyapple
    Yes, I have a drivers license to use. But when I looked at the different SAR request details of the various companies, there was an overlap of what was required. There was a List A and List B. I need to have another look and re-evaluate.

    I thought CRA's where updated monthly, and this is why I have seen it suggested that you essentially get a 1 month grace period - allowing you to get quotes from various companies in this timeframe without it drastically impacting your CRA, as the other companies don't see your other quotes / applications until the following month.

    Seems like I've potentially misunderstood the way that this works?

    Thanks again for your advice.
    Originally posted by Jimmy_Boy

    Yes you have. Your credit files are 'live' and updated daily. You could make 5 credit applications in 1 day and each lender will be able to see that you had made another application elsewhere that same day. What they don't see is whether you were successful or not because an account won't have been created yet. But obviously the more hard searches you have, the likelihood is you were declined and again it's just another factor that comes into play by the lender's individual lending policy which is credit scored within seconds as to whether you are declined or accepted.

    Getting quotes for things like car insurance, those are classed as soft searches and not seen by anyone but yourself. You could do as many of these as you wanted within whatever time period because it won't affect your credit history.
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • PaulL
    • By PaulL 24th Oct 17, 4:21 PM
    • 6 Posts
    • 4 Thanks
    PaulL
    My mortgage advisor told me this;

    Always be honest, otherwise when they find out (which they will, as they all share info about each other) then you'll be in a whole heap of trouble.

    You need to weigh up your options and you'll realise that its not worth the risk of telling little white lies (fraud)
    • iolanthe07
    • By iolanthe07 25th Oct 17, 2:49 PM
    • 4,903 Posts
    • 4,620 Thanks
    iolanthe07
    Er when has anyone who is renting ever taken out a loan for "home improvements"

    Well, I would, for one. I have guaranteed life long tenure for my wife and I at a reducing rent. I am very happy to spend money on the house, which will be our home until we die or get taken into care; indeed I will be spending £5K to £10K over the next couple of years. I won't be borrowing it as we have sufficient savings, but the principle remains the same for anyone in my position.
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • Candyapple
    • By Candyapple 25th Oct 17, 3:01 PM
    • 2,472 Posts
    • 1,848 Thanks
    Candyapple
    Er when has anyone who is renting ever taken out a loan for "home improvements"

    Well, I would, for one. I have guaranteed life long tenure for my wife and I at a reducing rent. I am very happy to spend money on the house, which will be our home until we die or get taken into care; indeed I will be spending £5K to £10K over the next couple of years. I won't be borrowing it as we have sufficient savings, but the principle remains the same for anyone in my position.
    Originally posted by iolanthe07
    I'm guessing you are of the older generation? If so, your situation is the exception, not the norm. Also most people these days can't get council housing so a rather moot point.

    The majority of tenants who pay rent to their landlords would be insane to drop large amounts of money on home improvements from their own pocket given that once done, their landlord could decide to sell up and reap the profits which they didn't have to pay a penny for, and/or increase their rent and they would have no choice but to pay up or move out.
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • Jimmy_Boy
    • By Jimmy_Boy 25th Oct 17, 3:15 PM
    • 38 Posts
    • 5 Thanks
    Jimmy_Boy
    Sent CIFAS SAR off today, will keep you posted.

    Need to send off to the other 2 agencies too.

    Thanks for all your help and advice guys - even if it has made me worried sick.
    • Jimmy_Boy
    • By Jimmy_Boy 25th Oct 17, 4:49 PM
    • 38 Posts
    • 5 Thanks
    Jimmy_Boy
    I don't want to jump the gun, but I'm just trying to think through possible outcomes.

    Lets say, hypothetically, CIFAS and the other 2 agencies come back clear, no marks on my name, would I be safe to then apply for a mortgage? I worry that applying for a mortgage for £9,000 after a £9,000 'Home Improvements' loan was declined, will in itself flag me.

    Thanks.
    • Herzlos
    • By Herzlos 26th Oct 17, 4:45 PM
    • 5,956 Posts
    • 5,417 Thanks
    Herzlos
    Ignore the CIFAS; if it gives you problems you address it as a misunderstanding.

    Applying for a £9k mortgage after a £9k loan was declined shouldn't be a particularly big deal. The loan was declined because you were a renter, so you should be OK. Go and talk to your bank or mortgage provider for more information on the application process.
    • Jimmy_Boy
    • By Jimmy_Boy 6th Nov 17, 1:51 PM
    • 38 Posts
    • 5 Thanks
    Jimmy_Boy
    Just got my reply from Synectics Solutions... they say they have performed a search and can confirm there are NO details being held by them.

    Still need to wait for reply from CIFAS and National Hunter. But it's a good start.
    • Jimmy_Boy
    • By Jimmy_Boy 8th Nov 17, 5:07 PM
    • 38 Posts
    • 5 Thanks
    Jimmy_Boy
    So... My ClearScore and Noddle have updated, and they show NO searches. Would of thought there would of been a search for the loan application?

    Still waiting on CIFAS and National Hunter.
    • Candyapple
    • By Candyapple 8th Nov 17, 7:26 PM
    • 2,472 Posts
    • 1,848 Thanks
    Candyapple
    So... My ClearScore and Noddle have updated, and they show NO searches. Would of thought there would of been a search for the loan application?

    Still waiting on CIFAS and National Hunter.
    Originally posted by Jimmy_Boy
    Have you checked your Experian report?

    https://www.moneysavingexpert.com/creditclub
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • Jimmy_Boy
    • By Jimmy_Boy 8th Nov 17, 8:36 PM
    • 38 Posts
    • 5 Thanks
    Jimmy_Boy
    Thanks for the link, appreciate that.

    Yes, it shows on there.

    Details of Search
    Application Type
    Personal Loan
    Entry code
    P7
    Additional Information:
    No additional details recorded
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