Timing of application

AD_92

Hi,

our finances have been in a "delicate" state owing to a significant amount of unsecured debt that my partner had racked up without my knowledge. I've done my best to manage that but as you can imagine its still a situation that is causing some stress.

We've just come out of our mortgage fix and onto the SVR and with an imminent reduction in childcare costs i've got some headroom to help get things paid off. Looking at a loan to consolidate (which i know isn't everyone's cup of tea) and get things sorted so i got my equifax report yesterday. The report still shows the mortgage payment at its fix rate not the new amount so my question is whether you would recommend holding off an application for a loan until the mortgage amount is updated on my credit report?

thanks,
AD

Wutang_2

AD_92 wrote: »

Hi,

our finances have been in a "delicate" state owing to a significant amount of unsecured debt that my partner had racked up without my knowledge. I've done my best to manage that but as you can imagine its still a situation that is causing some stress.

We've just come out of our mortgage fix and onto the SVR and with an imminent reduction in childcare costs i've got some headroom to help get things paid off. Looking at a loan to consolidate (which i know isn't everyone's cup of tea) and get things sorted so i got my equifax report yesterday. The report still shows the mortgage payment at its fix rate not the new amount so my question is whether you would recommend holding off an application for a loan until the mortgage amount is updated on my credit report?

thanks,
AD

Firstly avoid saying "as you can imagine".

aj2703

AD_92 wrote: »

Hi,

our finances have been in a "delicate" state owing to a significant amount of unsecured debt that my partner had racked up without my knowledge. I've done my best to manage that but as you can imagine its still a situation that is causing some stress.

We've just come out of our mortgage fix and onto the SVR and with an imminent reduction in childcare costs i've got some headroom to help get things paid off. Looking at a loan to consolidate (which i know isn't everyone's cup of tea) and get things sorted so i got my equifax report yesterday. The report still shows the mortgage payment at its fix rate not the new amount so my question is whether you would recommend holding off an application for a loan until the mortgage amount is updated on my credit report?

thanks,
AD

Secondly ignore stupid comments like the one above.:rolleyes:

As to the op's origional question i am sorry i can be of no help, but hang around i am sure someone more in the know on these things will come along:D

AD_92

Thanks for that.

~Brock~

Firstly, a few questions.

How much are we talking about here in terms of size of loan?

By how much difference is the change of mortgage payment going to be?

How clean is you/your partners credit history?

AD_92

Hi,

The loan would be £12,500.

Difference between mortgage payments will be £355 per month.

On equifax my history appears above average, i would be surprised if my partners is the same level. Not got experian yet. I would probably apply for the loan in my name alone on the back of my salary.

irish_eyes_r_smiling

Wutang wrote: »

Firstly avoid saying "as you can imagine".

~Brock~

AD_92 wrote: »

Hi,

The loan would be £12,500.

Difference between mortgage payments will be £355 per month.

On equifax my history appears above average, i would be surprised if my partners is the same level. Not got experian yet. I would probably apply for the loan in my name alone on the back of my salary.

If you are financially linked with your partner then their credit history would also be a factor in getting approved, because you are likely to be fiancially linked through your joint mortgage.

Nowadays it is likely to be very difficult to get £12.5k unsecured, but if you haven't already then go and see your own bank. By that I mean actually go and sit down with them and explain everything face to face. This could give you a better chance of sorting it out at a reasonable rate.

The secured loan market is equally depressed, but if you have enough equity in your property then have you thought about approaching your mortgage lender? At least with them they already know that the mortgage payment is coming down.

The final, and probably cheapest option in the long run, is simply to plough everything into the existing debts, in order of interest cost. Short term pain for long term gain - it will be paid off in no time!

bigdave1973

Have you considered a debt management company?

I've not used one myself but would be interested to hear peoples opinions!?

AD_92

Thanks Brock.

bigdave, not considered a debt management company so can't help.