Help with getting a loan

cirrus1007

I am in need of a small loan (circa £5k). Sadly, my credit history is not good enough to get a high street loan and I don't want to go down the route of adverse credit lenders. I have a property which was left to me and although it cannot be sold at present, I was figuring there must be a way of using it as collateral with my bank? Surely there must be some way I can release some money from the house, pay interest and then when the house is sold in the years to come the banks take theit cut? It is not my main residence and has a tenant living in it but surely there is a way the bank can lend on this? Seems crazy having this money sat in the property and not being able to access it.

CLAPTON

If the property can't be sold then presumably the bank couldn't force it's sale?? If so then it's no use as security.
So it depends upon your income (including the rental income if any) and your credit rating.

cirrus1007

This is what is frustrating. Income is around £60K per annum but credit rating is shot to pieces due to an £18K default registered 2 yrs ago.

CLAPTON

Why does someone with an income of 60k need a loan of 5k?
too many unknowns here
full facts or nothing.

cirrus1007

Why wouldn't I need a loan? Need to replace car urgently and don't have 5 grand lying around. I have a hefty mortgage which means that my disposable income isn't huge. Don't be so naive to think that because I earn a reasonable amount that I have thousands to play with each month - we all live to our means. These are the facts. Am after someone to help me with my original request - not someone to villify me for spending what I earn:rolleyes:

jonesMUFCforever

cirrus1007 wrote: »

Why wouldn't I need a loan? Need to replace car urgently and don't have 5 grand lying around. I have a hefty mortgage which means that my disposable income isn't huge. Don't be so naive to think that because I earn a reasonable amount that I have thousands to play with each month - we all live to our means. These are the facts. Am after someone to help me with my original request - not someone to villify me for spending what I earn:rolleyes:

Please explain then why you cannot mortgage the house and raise the £5k?

cirrus1007

How do I mortgage the house which has no mortgage? I am not credit worthy. Am I banging my head against a brick wall here? Certainly seems that way.

bradleyt

I needed a loan recently of the same amount but for business equipment. Of course nothing came of it but I eventually got the money by a lot of begging and some blackmail so there is always hope..

jonesMUFCforever

If you have a property worth say £100k unencumbered then any lender would lend you £5k against it.
The downside is that should you default they will repossess.

Crystallady

jonesMUFCforever wrote: »

If you have a property worth say £100k unencumbered then any lender would lend you £5k against it.
The downside is that should you default they will repossess.

But if the property "cannot be sold " as the OP has said I don't think the banks will accept it as security.

OP why can't the property be sold ?

Emmzi

you can indeed sell a property with a sitting tennant. You just wont get a lot for it.

£18k is a blummin' huge default. It's not like £20 missed off your mobile phone bill. I honesty think you're barking up the wrong tree here, and are going to have to settle for a £500 banger paid for out of your wages until you can save up for a slightly better car.