sub prime credit loan?

laurenjs88

Hey guys & gals

I'm after some advice, OH & I want to try and get a £15k loan, His score is aroud 540 & mine is around 432 average accross the 3 companies. There is not really anything we dont manage we've had some missed/late payments this year due to moving house & switching Bank accounts, other than that its my file really i got out a business contract phone for my ex partner, we spilt and I was left with a huge contract and buy the time i got the phone back he'd racked up a £1000 bill ringing sex lines for me. Anyway ill save the sob story as its paid off now but is just lingering on my file like a bad smell..

We want to pay it off over 5years bring in a joint income of £36.5k and want to use £7k to pay off all the credit cards and students OD's and the other £7k towars the deposit for the house were looking to buy.

we've both tried Zopa but didnt get passed the credit checks for some reason

Thrugelmir

No chance of obtaining a loan. You need to build your credit rating up for the future. Excuses such as moving home and bank accounts don't wash when it comes to making payments on time. Ultimately its your responsibility what ever the circumstances.

Borrowing the deposit for a house purchase won't work either. So forget that idea.

Visit the Debt forums and obtain some advice on managing your money better. As firstly you need to clear your debts before even considering saving a deposit for a property.

laurenjs88

Thanks for your reply

Its not the payments we have problems they, money goes in it goes out and we plod along perfectly fine, We spoke to a Mortgage broker yesterday who has said that its really a case of getting the amount on OH's cards down and getting my score up so to be uber good for another 6 - 12 months and try to beg/borrow/steal/save a 5% deposit. We have an SOA & we have a nice life even with my income being less than half at the moment (maternity leave)

Its just rally about getting us "mortgage worthy"

We've looked inot snowballing and are going to start there but our no interest student account has just finished and now they want £1 a day charge on it which has !!!!!!ed us over a little bit!

CLAPTON

you have any income of 35k and a nice lifestyle but debts of 7k
why not just pay off the 7k asap and then save for the deposit; this will reduce the money you waste on interest and OD charges

most main stream mortgage lenders will take into account your debts so 'borrowing' the deposit won't help a great deal and you will of course be paying interest on the loan too.

also potential loan lenders will 'see' your potential debt as being 7k plus 14k i.e. 21k which is a huge debt compared to income of 35k

[Deleted User]

Switcing your debt from CC debt to loan debt is still debt and will be viewed as such by any lender - to get the debt down you need to pay it off not just switch it.

I also think the days are gone that you can use borrowed money to fund a house deposit - the purpose of a deposit is that you have some equity in your home, and lower the LTV, making the bank happier - if something goes wrong and they have to reposess your home they are more likely to recover their money. If you defaulted on the loan and the mortgage there'd be a far higher risk they'd not recover their money.

My advice is pay off your debts and start saving

laurenjs88

Thanks for the replys we are paying off the debts, weve sat down and worked it all out with the snowball calc. Were going to put £300 a month to paing off the debts plus any extra left floating around at the end of the month. Ive just payed off a £400 OD & were trying to work out whether to pay off one of the £200 debts straight off or put that into the student OD to reduce it to £800?