Loan Application - Any advice?

SlimMattyB

Hello there,

I thought i'd canvas peoples' opinions about the options open to me for getting hold of some capital.

Currently i'm a full-time PhD student in receipt of £12,300 tax-free bursary per year. I'm also employed in the civil service part-time, receiveing net £3,600 p/a. This leaves me with roughly £1,300 net income per month. After deductions and living costs, savings, pension, mortgage (fixted-term for another three years) etc., I'm left with £250-300 per month of income that can go as loan repayments. Having just moved house, all my savings are tied-up in the deposit.

To get to work/uni/voluntary work I need a car. My current car is going to die very, very soon (needs new gear-box, cam-shaft, exhaust system - I bought a lemon!). Not wanting to get stung again, i'm hoping to get a new or nearly-new vehicle. I've costed that I can comfortably afford to pay upto £215 p/m. Which gives me a loan amount of upto £8,000 (repaid over 42-48 months).

However, because i'm a full-time student, no loan company (with fair rates of interest) will touch me, unless I consider securing the loan against my house (which I am reluctant to do). Frustratingly, my bank (and mortgage provider) have informed me that, were I not a full-time student (and therefore, ineligable for the bursary I receive), they'd be happy to give me a loan.

Any thoughts on how I can get a loan or a decent new car, that can be paid off with regular instalments. The way things are at the moment, i'm going to spend a fortune keeping the current jalopy on the road, when i'd much rather spend this money on a vehicle with a life-expectancy of more than 6-months!

Many thanks

Matt

mrcow

The only option I can think of is asking if whether having someone acting to guarentee your loan would help?

As you've already been to your bank (and mortgage provider) you've already tried the best option I would have thought.