Advice for a loan?

xsezzx

Hi all

I currently have a 5k loan with sainsburys and 5k car finance (my loan was to buy a car but it blew up a few months later, hence now having finance and the loan...) this is fine and i can manage this no problem

I am looking to buy some land for my horse, i have found some that is 10k - would it be possible to get another loan out for 10k (which i can afford) or would i be turned down?

I am 21, live in rented, and im working, bringing in around 18k a year

Thanks alot

CHR15

You are already £10K in debt and want to increase that to £20K...... with a salary of only £18K and no assets.

Are you horsing around??

xsezzx

Haha....by the sounds of it maybe I am...

It was an idea.... maybe it was a bad one!

LeeSouthEast

Madness. In my opinion.

xsezzx

Ok - thanks for your opinions

I know it must seem crazy, taking out more money, but at the moment my horse costs me 250 a month, so I thought instead of paying someone else, id rather own my own land - that was my logic behind it all?!? But im sure more land will come up - my car will be paid off in two years, and my loan in 3 so I'll look then

julie2710

If you could afford repayments on an additional 10K loan, although I would imagine it would be a stretch, why not try and over pay on the borrowing you already have which would mean you pay off those debts quicker,pay less interest and get to look for land for your horse sooner and debt free?:j

xsezzx

Good idea Julie - i will look into that, thanks!

WildWayz

A loan of £10,000 over 5 years @ 8.9% would be £207.10 a month...
Say it was a £20,000 over 5 years @ 8.9% - that is £414.20 a month.

I imagine your take home on £18,000 is about £1,250. This would leave you with £835.80 a month for rent, food, car, bills etc..

I think you are stretching it on an £18,000 budget for both the horse and the loans

xsezzx

My theory was - the 250 i spend a month on the horse renting someone elses land - could go into the loan for my own land - therefor no extra costs involved? (other than the money i put aside for him every month)

However i think i was getting a little carried away, and will pay off my other debts first before i even try and take some more money out - thanks for all your help

michael1983l

I think lenders won't borrow above 50% of your yearly income I believe in general.

WildWayz

Sorry xsezzx - just me thinking about all scenarios

I mean, once you have this loan for the land, you also need to build shelter for your horse... and unless you want it to live in mud, you'll need to re-lay grass etc. Also vet's bills, farrier (spelling!) bills etc

Not trying to put you off - just trying to help you think things through