Help! Who will offer me a loan now I'm working part-time

salsta4324

I have just recently returned to work part-time after having my son and decided that I would like to get a small loan in order to buy a bigger and safer family car. Having always worked full time up until now and having always had a good credit history, I am used to having credit agreed with no problems. I would like to do this loan off my own back as my partner is in the middle of an IVA and although we managed to get quite a good deal on a mortgage when we bought our house in 2007, I am sure this will make a difference to a loan application.

I am earning just under £8,000 a year now and applied earlier this week for an £5,000 loan which would cover me buying a car for approx £2,000 and consolidating the £2,500 balance I have on my credit card, with an additional £500 to put towards our wedding this year. What I didn't realise at the time and what I found out when I applied for a loan is that as my name is on the mortgage of our house then the full mortgage and council tax payments were taken into account (my partner pays the mortgage) and of course my application was declined.

I now am thinking that it would maybe be a good idea to just get a loan for the £2,000 for the car, if I can, but was just wondering if anyone could recommend a loan company that is likely to offer me a loan now I am on a much lower income. I appreciate the APR is likely to be higher for such a small loan but do not want to go to a company where I am paying through the roof.

Thanks

The_MoneySavingKid

No one will actually lend to you.

Rafter

Given your existing financial commitments, getting a loan is going to be really tough I'm afraid.

Borrowing over 1/2 your income, when you are only earning £8k is simply too much risk for a lender to take, and in any case they have to demonstrate that the loan is affordable for you - which in your case it wouldn't be if your partner started earning less.

Your only option might be some sort of motor finance where the loan is secured on the car - wouldn't recommend it though - the cost will be stupidly high. You would be better off trying to save up and try and make do for now.

R.

salsta4324

Thanks for your help and explanation Rafter. Think I may well have to go for the saving option and try and keep my old banger going a bit longer!! Do you think I would be in the same predicament if I asked for a smaller loan or am I going to still come up against the same brick wall?

ILW

I think that another problem you have is that you are financially linked to your partner, and he is on an IVA so it will affect you both.

salsta4324

His IVA has not caused me any problems in the 3 years we have lived together and we managed to get a mortgage with only a very slightly higher than norm interest rate at the time we took it out but thanks for the thought. Our FA said his credit rating was nowhere near as bad as expected for someone with an IVA.

jonesMUFCforever

salsta4324 wrote: »

Thanks for your help and explanation Rafter. Think I may well have to go for the saving option and try and keep my old banger going a bit longer!! Do you think I would be in the same predicament if I asked for a smaller loan or am I going to still come up against the same brick wall?

When you applied did you actually see a real person in the bank or did you do it on the phone or online?
The fact you only work part time does not materially affect your application but whether you can afford the repayments does (of course).
Sit down with somebody - they will tell you what amount if any they will be prepared to lend you.
If you do get a loan though you will probably lose any overdraft and credit card (if they are all with the same bank) for at least 12 months to stop you accruing more debt.

salsta4324

OK. That sounds like a good plan. Thanks for that.:T