Do you think I'll be able to get this loan

Knackered

I'm thinking of buying a new car before the end of the year but I'm slightly concerned that I won't be able to get a loan for one.

The loan would be for £13.5k paid over six years, the best looking deal I've found for this is with the Post Office and works out at little over £230 a month which I can handle. Problem (as the lender may see it) is that I only earn £17k a year and have only just taken on a mortgage.

I've got no defaults on my credit record any more (had a couple set against me in 2004), I've had credit card since March which I owe £400 on and I'm paying well above the minimum payments, and my overdraft is only £50 and I hardly ever dip into it. No other debts.

If anyone can rate my chances of getting the loan, please do so!

somethingcorporate

zero.

You want to take more than a years worth of net income on a loan for a car? Why?

Perhaps cut your cloth to suit.

Dabooka

I'll throw my hat in the ring to get the thread started.

I'd say your chances are zilch, you don't appear to earn enough to service that kind of debt. Incidently, wanting a £13.5k car on a wage of just £17k is madness

iolanthe07

Lenders generally will look at 50% of income as an absolute maximum for an unsecured loan, and only then if you have a squeaky clean credit record. You might get a loan for around £7K - £8K if you're lucky.

Knackered

Damn it. Thought as much.

somethingcorporate wrote: »

zero.

You want to take more than a years worth of net income on a loan for a car? Why?

Perhaps cut your cloth to suit.

Dabooka wrote: »

I'll throw my hat in the ring to get the thread started.

I'd say your chances are zilch, you don't appear to earn enough to service that kind of debt. Incidently, wanting a £13.5k car on a wage of just £17k is madness

Like I said, I could happily afford the monthly repayment figure.

somethingcorporate

It is not just about affordability, total credit exposure is also a key driver of whether credit will be granted.

Do you not see how silly it would be borrowing a years income for a car??

opinions4u

Knackered wrote: »

Like I said, I could happily afford the monthly repayment figure.

How much is your mortgage payment? How much is your council tax? How much is your heating and electricity?

How much do you take home a month - £1k?

The loan would be for £13.5k paid over six years

Most credit scoring systems will reject you for taking a car loan over a period longer that 4 years.

If you can afford £230 a month, save it up and buy the sexy car in 2017.

chalkie99

Knackered wrote: »

Like I said, I could happily afford the monthly repayment figure.

You have no idea how many times that has been typed out in this forum.

Even if you could get the loan, six years is a hell of a period to be paying for something that will be next to worthless by the time it's paid for and who knows what our situations will be in six years time?

Knackered

The same could be said of a mortgage - who knows what the situation will be in 30 years?

Anyway, to hell with the loan. The car can be leased for a bit less per month. Hurrah!

Dabooka

Knackered wrote: »

The same could be said of a mortgage - who knows what the situation will be in 30 years?

Anyway, to hell with the loan. The car can be leased for a bit less per month. Hurrah!

:wall::wall::wall::wall::wall::wall:

GAH

OP, some sound advice above.

You wont get a loan for that amount, but even if you did why would you want to

You take home approx £1k, you have a mortgage, you have a balance on your CC, you are in your overdraft, and then you want to spend a quarter of your take home on a car over six years.

Sorry Im not normally this blunt, but you would be living outside your means.