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Personal loan 'affordability/budgeting'
I am wondering if the teams responsible for approving or declining loan applications are likely to take any notice of the fact that I don't live in UK and therefore have no additional outgoings eg council tax/utilities/FOOD etc?
eg:
My UK income GBP796 pcm (from rental of property)
My UK outgoings Mortgage 168
Life Policy 15
Repayment to Business Loan 260
Does anyone happen to have a rule of thumb guide to the ratio of outgoings to income that is generally considered acceptable? The loan I was considering is thru HSBC, with whom I have the mortgage and (fwiw) have banked for the last 30 years.
What I had wanted to do was repay the Business Loan and leave around half for home improvements......so as not to significantly increase the outgoings (Personal Loan repayments were GBP260 same as Business Loan).....but of course this can't be done as it's not possible to use Personal Loan for (effectively) Business - my business in the UK is inactive.
So it looks as though my outgoings would be GBP703 with an income of GBP796.......I am guessing that those figures are far too close together?
eg:
My UK income GBP796 pcm (from rental of property)
My UK outgoings Mortgage 168
Life Policy 15
Repayment to Business Loan 260
Does anyone happen to have a rule of thumb guide to the ratio of outgoings to income that is generally considered acceptable? The loan I was considering is thru HSBC, with whom I have the mortgage and (fwiw) have banked for the last 30 years.
What I had wanted to do was repay the Business Loan and leave around half for home improvements......so as not to significantly increase the outgoings (Personal Loan repayments were GBP260 same as Business Loan).....but of course this can't be done as it's not possible to use Personal Loan for (effectively) Business - my business in the UK is inactive.
So it looks as though my outgoings would be GBP703 with an income of GBP796.......I am guessing that those figures are far too close together?
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Comments
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So it looks as though my outgoings would be GBP703 with an income of GBP796.......I am guessing that those figures are far too close together?
Almost certainly. Also, your UK income is wholly dependant upon your tenants paying their rent in full and on time. Not a secure basis for a loan from a bank's point of view. Other parts of this site are full of threads from landlords who have been screwed by their tenants. (Including me!)I used to think that good grammar is important, but now I know that good wine is importanter.0 -
iolanthe07 wrote: »So it looks as though my outgoings would be GBP703 with an income of GBP796.......I am guessing that those figures are far too close together?
Also, your UK income is wholly dependant upon your tenants paying their rent in full and on time. Not a secure basis for a loan from a bank's point of view.
Whilst this is undoubtedly true, is there any evidence of the ratio that the lending team look to achieve? - is basically what I am asking.0
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