Loan with the halifax - need advice

icklejulez

My OH and I are about to go to our bank to see if they will increase our loan (initially 14k now 12k) to 17.5k and are wondering what they are likely to say. After getting this loan a year later we got another loan with NR for around 10k but this has been cleared since along with another credit card of 5k. At the moment the CC is with Halifax and it is at approx 21% so we would like to consolidate it with loan to stand a chance at paying it off. What do you think our chances would be.

It will be in my OH name and he earns 17.8k salaray plus 1.5k bonuses
I earn 8.5k + 1k bonuses
we have 2 kids
lived in home for 3 years 4 months
banked with halifax for 12 years(OH) and 6 years(me)
two kids 3 and 1
stable job
house value 125k mortgage 51.7k ( PIL gave us 50% to buy the house but this is a private arrangement and banks are unaware)
age 28(OH) and 24(me)
My OH credit score 865 and mine 385(worst case with experian)

Were just wary on upsetting our credit history as we are moving house soon and will require a larger mortgage. We were recently turned down for this 5.5k on a 0% mbna credit card. Due to the amount of interest though we really would like to wipe this card clean.

Any body know what halifax are like for loaning this amount??? Or how our situation sounds from an outsiders point of view?

Xbigman

Consolidation is not always a good idea but if you are doing so whilst keeping the repayment term roughly the same with no additional borrowing, and you cut up the card afterwards, I think in your case it could work because you are keeping all other factors the same, just paying a lower APR.

My first suggestion would be to try for another card at a lower rate, but you have tried that. Was your rejected application in joint names? If it was then just try again in OH name. Also, the other cleared debts in your signature. Are all those account closed? If not, that will help too.

Next thought. Did you take PPI on the 14/12k loan? If you did then extending or replacing that loan would be a really bad idea. If not then your main concern is that they will try to bang the rate up on any new bigger loan. Check the maths on that very carefully if they do offer you anything.

How did you clear your other debts? If you do have some spare income you may be better off in the medium term by just paying down the 5.5k as fast as possible.

Lastly. What is it on your credit record that is lowering your score? If its a default or CCJ then getting a new bigger mortgage next year may be harder than you think. If its just some missed payments you could be OK.
Regards



X

icklejulez

OH just got back from the bank, he decided he had to go! Good news is they will give us an extra 3.8k if we have the loan ove 7 years as opposed to 5 remaining. The extra 1.7k we will be able to pay off when we eventually move house (if you've followed my story of '2' lost buyers) which will be a bonus as previously we wouldnt of done this! This also gives us time to keep all payments managable and when we move house save up so we can set up s a new loan in say a years time when we can also pay off a lump some a dramatically reduce the length of the term. We want to be debt free in 4 years time.

Thanks xbigman, the debts in signiture are still open becasue in case of Amex we were waiting till aug for cash back to be given back. But for the sake of £40 we are going to get it closed TODAY! The mastercard is still open as it is a £400 limit and handy for me to have with the kids when needed. Will also look into how to close a NEXT account today.

I have no PPI on any of my loans. They also kept the rate the same which is 8.9% because of credit issues. I have no extra income we have just saved every penny and 17k inheritance early in the year. I have a default on my file but have already secured a mortgage. We were weeks away from moving in October then lost our buyers. We then sold again for at last moment our buyers losing their buyers. So we have a lot of people interested but no one seems to be ready to proceed till after new year. This will give us time to enjoy xmas though.

Thanks for all your help. I know I havent reduced anything yet but feel like Ive saved a fortune in interest to halifax!

regularsaver1

Can i just say that 8.9% is generally the cheapest at the mo - so don't say its because of credit issues

the only lower rates they do is when the loan is guaranteed - but this onlu guarantees up to £13k