Loan Advice Please

Anniek1969

Just posted this on the Loan board and someone advised me to post it here to see if any of you DFW's can give me some advice.

Need some advice regarding a loan, we really need to borrow about £1000 short term. Our car needs some work done and my husband is in the process of leaving his job and is currently in a home computer scheme which will have to be repaid from his final pay. This will take all of his pay and he'll still owe about £500 which according to the contract will have to be repaid within 7 days. He's leaving to become self-employed as a taxi driver and will have fees to pay upfront so it means that we won't have any wage the week he leaves and will have the taxi fees to pay too.

We have a pretty poor credit rating due to past debt problems so the only way I can see out of it is taking a secured loan as we have about £30000 equity on our house. The problem is that most places will only allow you to borrow over £5000 and a minimum of 5 years. I don't need £5000 and I really wanted to repay over a maximum of 2 years.

Can't get a credit card, and I don't think I would be able to get an unsecured loan.

Financially we are ok right now and could afford to repay a loan but I don't really want to borrow any more than I need.

Anyone got any ideas as to how I can borrow this money?

Really driving me mad thinking about it all as I can't see any other way out than borrowing more than I need and over a longer term which means lots more interest to pay.

All advice gratefully received, thanks.

lynzpower

Weve had a really similar thing happen to us actually.

We needed 2k to move, to be repaid from the moneyt from selling the flat.

The best thing we found was to have a loan from the post office or the CIS 9 CIS was cheaper) which had no early repayment fees. We would borrow 5k as that was cheaper, repay 3 a few days later, leaving 2k still to pay over the life of the loan.

As its such a short time secured lending isnt going to be an option, especially as they wack on massive penalties for paying it back.

Storm

I'm presuming you haven't got any family or friends who could loan you some or all of the money as that would be the easiest way.

Can you take a mortgage break for a couple of months?

Not sure what timescale you're working on, but could either or both of you take on a bit of bar work/Xmas shop work for a month or two to raise some extra money? Sell whatever you can on Ebay/Amazon etc

I'm thinking that if you can raise at least part of the money yourselves you may be able to get your bank to give you an overdraft for the rest.

I agree that you don't want to take out a £5K loan when you only need £1K as it is too easy to just spend it - plus the interest over 5 years is silly. Are you sure you can't get a unsecured loan from a bank?

Sorry it seems to be more questions than answers!

lynzpower

is anyone on benefits in the house, only a social fund loan might be an idea worth enquiring about?

Anniek1969

We need the money by the middle of December so not much time, unfortunately we don't have any family that could let us borrow it and we're already repaying an overdraft with our bank so that's not an option.

I'm a SAHM and my DH works shifts usually not home till about 8 at night so overtime or extra work is not an option. He's just waiting on his taxi licence to come through which should be anytime within the next few weeks and then he's giving his weeks notice.

The only benefits we get are tax credits so don't think the social fund will give us anything.

Had a look at my credit rating on Garlik and it only gave me 2 stars and a rating of 560 but there were a few things that weren't on it. There wasn't anything on it that's in joint names like our mortgage and our suite so don't know how acurate that is.

Was going to try applying for an unsecured loan from citi financial as according to moneysupermarket they lend to people with poor credit ratings. Anyone had any experience of them?

Storm

Make sure you only apply when you're sure it's the best option for you & you think you'll be accepted as all applications show as footprints on your credit file.

My one thought though, could your OH leave handing his notice in for a few weeks - if he's working shifts he could probably be able to do a little bit of taxi driving (esp over Xmas & New Year) to raise some of the money needed?

Anniek1969

He did think about doing both jobs but he's a bus driver just now so he'll be seen and his company won't allow him to work both jobs, there's already been a few guys sacked for doing this.

We'd be ok if only his company would come to an agreement to repay the money for the computer but according to the terms and conditions it says that

"on termination of employment the pay saver arrangement will come to an end and you will then be liable to pay us compensation. The compensations will cover the aggregate amount of the deductions that would otherwise have been reflected in the continuing pay saver arrangement had your employment continued.

You agree that if your employment with us comes to an end we may deduct this compensation from your final net pay or any other monies owing to you by us. In the event of our being unable to recover the compensation in this way you accept that any remaining balance must be paid to us within 7 working days of the date your employment with us comes to an end."

The total amount originally owed was £1300 but we have paid about £300 back already, his final pay should be around £500 then there is anything that is owed to him for holidays but we don't know how much that will be.

On top of that our car MOT is up on the 13th and the exhaust has just gone so we need at least £200 for that.

We could probably borrow about £300 from family but don't think we'll get much more.

pudding06

DO you have a current account? How about asking the bank to give you a temporary increased overdraft with a set date for repayment? I have done this in the past with the halifax and it was no problem either to set up or end early.They didnt charge me anything for it either.

it may be worth ringing them and explaiingin the situation.

pudds

Anniek1969

I phoned Black Horse as we've already got an account with them which is nearly clear so I've to go and see them tomorrow morning. He said it didn't look to be a problem but I don't want to get my hopes up in case it doesn't work out. Would they ask me to go to the office if they weren't going to give me it do you think?

raq

do you know the website to cis 9??

lynzpower

raq wrote:

do you know the website to cis 9??

what do you mean?