Applying for a Personal Loan after just moving house

jonomassey

Hi,

I need to apply for a loan to consolidate my debt of around £12k. This will save us in the region of £150 per month in payments we are making on credit cards. We have just moved house and have got a new mortgage with the Abbey (santander) and I also bank with Santander so was going to apply with them. What do you think the chances are after just moving house?

My experian credit rating is 954 and my wifes is also 954 and we have no other debt except the credit cards and our mortgage.

Thanks

[Deleted User]

you would possible need a joint income of 48k to do this,thats the 12k you owe now plus the 12k you want to borrow = 24k,double that is 48k
they wont take into account that you plan to repay other debt after all you might not or even if you do you might run it up again

LovelyLeeds

jonomassey wrote: »

we have no other debt except the credit cards

...how do you work out that you will be saving £150 a month by taking out a massive loan to consolidate your credit card debt? Consolidation loans are the way to paydayloans then doom - if you post up your Statement of Affairs on the DFW board - you will be surprised on how you can cut down your monthly expenditure.
If you need to consolidate so soon after a mortgage offer then the only way is down.

jonomassey

We are currently paying around £400 per month off credit cards which have an interest rate of around 16.9% and the loan we are looking at would be £240 per month over 60 months at a interest rate of 7.4%. Our combined income is around £45.5k and so I thought it might be easier to get a loan than applying for 0% Balance transfer credit cards. When we moved house and got our new mortgage our financial advisor advised us to consolidate our credit cards with a loan and to then cancel the credit cards which we intend to do.

LovelyLeeds

jonomassey wrote: »

... and to then cancel the credit cards which we intend to do.

Ahhh, in that case then all is well and good(ish) - the only snag is, it's a human trait to sneak the cards back in one by one and before you know it, your cards are maxed out again plus you have the consolidation loan to pay. As long as you are adamant never to use any other forms of credit again until the consolidated loan is paid off in full, you should be ok.