Getting divorced, need cash

johnhyp

I would welcome some advice as to where to go for a £10-15k loan.
I have just started a divorce and need the cash in order to buy a car and make the house ready to sell. There is £100k equity in the property, which will be used to pay off the balance of the loan once its sold.
I'm looking for a loan which will accept me as having no proof of income, and preferably no large early repayment penalties.

Thanks for any advice.

John

Xbigman

Is the divorce settled or will you be splitting the house up later? If you do the house up and then split it in half you personally might be better off not doing it up and just selling.

Or would the loan be secured on the house and cleared from the proceeds? Would your (ex) wife agree? Especially if you use part of the money to buy a car?

What are you driving now? Do you really need a car? If you want to buy again you need to conserve every penny of your equity that you can for your next deposit.

A bit more background about your plans please, or are they a bit vague right now? Which they might be if the divorce is recent.
Regards



X

Bossyboots

xbigman makes some good points. In the ordinary course of events, you would be expected to pay back the loan from your share of the equity (which might be your intention, it is not clear), not the total equity. You should be able to negotiate some return on expenses to get the house ready to sell, but you may find it extremely hard to justify the car.

Even if you wife agrees now, there is every chance that by the time the finances fall to be settled, she will change her position so you should not assume, unless you have a written legally binding agreement, that the loan will come from the total equity rather than your share.

johnhyp

Divorce proceedings have just started, although quite amicably. My wife has taken the family car as she needs it for the children & work. I'm selfemployed and am in the process of a business change, therefore, have no proof of income, savings zero.
I need a car for business and am not earning without one. My wife knows this and accepts I require a car, ultimately, we will both benefit from it.
Yes, as soon as the house is sold the loan will be settled from the proceeds.
I have no problem in paying the whole loan off from my "share" of the settlement.
The money I would be spending on the house, would be to attain it's best price when selling. By spending £5-6k it will raise the potential selling price by £10-12k
I don't want to apply, only to get turned down, then have the application recorded on my credit check. I would rather pay a higher interest rate in order to get the loan first time. Just no idea where to look/apply.
Thankyou
John

Phoenix79_2

Your bank should be the first port of call. They will be able to see how you run your account etc and be able to offer a decision based on that.

roswell

Can you not get the car as a business asset? and why £15 000 thats a lot of money for a car and decorating a house.

johnhyp

Apologies for not being clearer.
I am in the process of setting up my business which has been self funded so far. Since my wife has left and she is the one with the full time employment, I am going to be unable to fund the business, purchase a car, modernise the property, as well as pay the mortgage, utilities etc.
I was hoping for the loan to ease the pressure. If it means borrowing £10k now, then paying back 11K in 12 months time, thats not a problem.

John

Xbigman

As said already, speak to your bank first.

Another possibility could be borrowing against the business to cover start up costs / car. Or lease a car and claim it back through the business.

Also. If you spend 5k doing up a house to gain 10k, then you split the 10k with your wife you still only get 5k, but you borrowed that 5k and paid interest on it, so you lost out.
You are also starting a business up, so do you have the time and energy to do up the house as well?
You might want to talk to an estate agent and see how sellable the house is in its current condition (not what its worth but how fast it will sell). Given your financial position I would think a quick sale would be more use to you than a theoretical extra few k that you end up doing all the work for.
Regards



X

johnhyp

The bank would be a problem due to no proof of income, setting up the business would not justify a loan of 10-15K
I looked at a secrured loan but they want both mine and my wifes names on the loan, as the mortgage is in both names. The wife has a terrible credit score.
I even contacted my mortgage company to see if they could reduce payments until property is sold, then take whatever is outstanding with interest incurred. They said they cannot do anything, or even offer advice, recomended i contact CAB. "but i'm trying to prevent any arrears before it starts" said I. "we cannot do anything unless you fall into arrears" said He. Unbelievable, It seems unless I default on my mortgage payment, I cannot get any help or advice.
I have an excellent credit score upto now, looks like that is under threat.

I realise this is possibly the wrong forum for this query, i'm not really looking to save money, more trying to get a loan at any costs before I end up in the brown stuff.

John