Increasing a loan?

x.jem.x

Hi all,

It's been a while since I've posted on here, hope you are all well.

I want to know...can you increase a loan? I have a loan due to end at the end of February 2012 but I wish to move and get my own rented flat again and wish to increase my loan so I have the funds available for a deposit. Is this possible?

Thanks in advance,
x

DCFC79

Ok so you want borrow more money so you can move out, could you afford the extra payments as they would increase would they not ?

Peelerfart

Who is your exisitng loan with jem ?

x.jem.x

DCFC79 wrote: »

Ok so you wnat borrow more money so you can move out, could you afford the extra payments as they would increase would they not ?

Yes I could afford the repayments as far as I am aware.

x.jem.x

Peelerfart wrote: »

Who is your exisitng loan with jem ?

It is with Barclays.

Peelerfart

x.jem.x wrote: »

It is with Barclays.

As long as you've been a good customer with them and not got black marks against you from anyone else, I wouldn't see a problem IMHO.

x.jem.x

Peelerfart wrote: »

As long as you've been a good customer with them and not got black marks against you from anyone else, I wouldn't see a problem IMHO.

I have been a good customer with them (then again, everyone would say they have been a good customer!) I have been in my arrears on 2 occasions but always got myself out of them quickly.

Tixy

Some banks now will refuse to extend / increase a loan (are you intending to extend the loan as well?), others will consider it - subject to the usual credit checks etc - worth a try if its what you want. If they do it in practice you'll take out a new loan and it will pay off the old and give you the balance in cash. Check the APR on the new loan agreement -its quite likely to be more than you current loan so check you are happy with it before you go ahead.

Given the short period they probably won't consider an increase to be paid over the original remaining term, you might find they want to extend it to at least 6months.

If they do refuse could you stay put for a couple more months until the current loan is repaid?

x.jem.x

Tixy wrote: »

Some banks now will refuse to extend / increase a loan (are you intending to extend the loan as well?), others will consider it - subject to the usual credit checks etc - worth a try if its what you want. If they do it in practice you'll take out a new loan and it will pay off the old and give you the balance in cash. Check the APR on the new loan agreement -its quite likely to be more than you current loan so check you are happy with it before you go ahead.

Given the short period they probably won't consider an increase to be paid over the original remaining term, you might find they want to extend it to at least 6months.

If they do refuse could you stay put for a couple more months until the current loan is repaid?

Hi Tixy,

I assumed that as I am asking for more money, I will have to extend the loan? I am unaware as whether I will pass a credit check with my bank as my financial situation has had its up and downs since I took out the loan in February 2009.

Do you have any suggestions as to wherelse I could turn? I cannot borrow any money from family as they have already helped me a tremendous amount in the past. I think a credit card is out of the picture as you can't withdraw money from a credit card.....

CLAPTON

x.jem.x wrote: »

I have been a good customer with them (then again, everyone would say they have been a good customer!) I have been in my arrears on 2 occasions but always got myself out of them quickly.

sorry to say that being in arrears a couple of times is being a bad customer.

they may or may not extend your loan and they may or may not give you a new loan

whether you can get a loan elsewhere will depend upon 1.
what your credit files say (get copies so you know)
2. and on your existing debts .. how much are they
3. and on your income ; how much is that

Tixy

Worth trying barclays first.

Depending on your finances / credit history - there are a few cards that allow you to obtain cash out cheaply (not as a cash advance). These are cards that allow a super balance transfer to your current account (such as virgin) and cards like tesco and M&S where you can use the card to buy sterling travellers cheques which you can then pay into your current account. The cards do need a good credit history to be likely to be accepted - unless you already have any of these cards?

If you rent from an agency you might find they accept credit cards anyway for the deposit maybe?

Do you have an overdraft with your bank? if not might that be an option (assuming you could repay it within a fairly short period).

There are schemes around to help people pay deposits but I believe these are generally for unemployed/ very low income so I assume you wouldn't qualify?