Advice on a Join Loan.

InFi[D]eL

Hello, my name is Kane and I'm new to the forums.

I have been reading around for a couple of days in search of advice and tips regarding our situation. I thought I'd post a thread to get some direct applicable advice to our situation and get a couple of questions answered.


My self and house mate are planning on getting a joint loan but we have some concerns.

- We are joint tenants, not married or in a relationship, is that important?
- I am only 22 but my credit report is all zero's and my house mate is in her 40's but does not have a great credit score. So can one balance out the other? (she has been allowed a contract mobile which she has always payed and also a Vanquis credit card)
- I have a credit card that was recently in arrears for about 3 weeks. Is that likely to have a major impact?

My debts total between £900-1000
Her Debts are only around £300.

Neither of us are employed as we are both needed to provide care for her 11 year old child whom is autistic. I however do claim JSA as I am eligible for work and actively searching a somewhat limited market.


Our household income is sizable due to the various benefits she is entitled to; namely disability living allowance (topped up with income support), carers allowance, child tax credits plus child benefit for her other child. We can easily meet a reasonable repayment, but we are worried the fact we are on benefits and not in full time employment maybe held against us. (1552 P/m total)


We are looking for around £6000 to clear our small debts, organize a new car which we urgently need and make a few other needed purchases, plus there is the hellish cost of Christmas approaching.

We are not home owners and we are homed by the council. We also are not willing to secure against gold or other valuables, not that we really have enough assets for that anyway.

Can anyone here perhaps recommend a company they have had positive dealings with or offer any advice. We both strongly want to avoid brokers but must raise this the loan amount soon. We are looking at term of 36-48 Months.

Thank you all very much for reading and any tips you are able to provide.

- Kane


EDIT:

ADDON:

We both feel guarantor loans are immoral so that's not an option either.

Tixy

InFi[D]eL wrote: »

- We are joint tenants, not married or in a relationship, is that important? not important to whether you would be accepted for a loan or not. Important that you realise you will become financially linked to each other - and that you will both be responsible for repayment of the full amount of the loan. If you fall out and one stops paying the other must continue to pay or face court action
- I am only 22 but my credit report is all zero's and my house mate is in her 40's but does not have a great credit score. So can one balance out the other? (she has been allowed a contract mobile which she has always payed and also a Vanquis credit card) If she has anything negative on her file then once you are associated it will impact on you and affect your ability to get credit now and in the future
- I have a credit card that was recently in arrears for about 3 weeks. Is that likely to have a major impact? what shows on your credit file - does it report as a '1' marker? Does it show that its now been paid - i.e wasn't the last reported month? 1 missed payment wouldn't normally have a major impact but as if its recent it could do.

My debts total between £900-1000
Her Debts are only around £300.

Neither of us are employed as we are both needed to provide care for her 11 year old child whom is autistic. I however do claim JSA as I am eligible for work and actively searching a somewhat limited market. How can you be searching for work if you are needed to provide care? Being both on benefits will make it exceptionally difficult to get any loan.

Our household income is sizable due to the various benefits she is entitled to; namely disability living allowance (topped up with income support), carers allowance, child tax credits plus child benefit for her other child. We can easily meet a reasonable repayment, but we are worried the fact we are on benefits and not in full time employment maybe held against us. (1552 P/m total)
If you are not in a relationship then you don't have a household income - you both have seperate incomes. It will absolutely be held against you -benefits are designed to be the basic amount people need to live on - not enough to fund repayments on loans.

We are looking for around £6000 to clear our small debts, organize a new car which we urgently need and make a few other needed purchases, plus there is the hellish cost of Christmas approaching.
No chance of a £6k loan on benefits. Why would you even consider funding 1 Christmas over 3 - 4 years - that makes no financial sense. Christmas does not have to be a hellish cost - in fact there is no reason it has to cost anymore than any other day. If you can't afford presents don't buy them, or you could buy token presents or make them.

I'm glad you don't intend to try going down the guarantor loan route.

I think you have no chance of getting the loan you want, and very little chance of getting any loan. I think you'll need to reconsider, carry on paying off the debts you have, have an ultra cheap xmas and save up for a cheapr car. You certainly don't need £4700 for a car and 1 xmas.

XXSCOTSLASSXX

We are joint tenants .... Do you mean here you are both on the tenancy aggreement with the council or are you the 'lodger' so to speak ...

Killmark

Your also at risk of being done for benefit fraud if you go ahead. If you have a joint loan then if someone reports you two as a couple then it will almost certainly go against you as you will be financially linked.

Secondly your post sounds as if you are in a mutually reliant relationship and fyi just because you may not be having a sexual relationship doesn't mean you aren't viewed as a couple for benefits purposes.

InFi[D]eL

Tixy wrote: »

I'm glad you don't intend to try going down the guarantor loan route.

I think you have no chance of getting the loan you want, and very little chance of getting any loan. I think you'll need to reconsider, carry on paying off the debts you have, have an ultra cheap xmas and save up for a cheapr car. You certainly don't need £4700 for a car and 1 xmas.

Well the amount covers the car, Xmas, described debt plus a few other personal debts owed and other expenses.

XXSCOTSLASSXX wrote: »

We are joint tenants .... Do you mean here you are both on the tenancy aggreement with the council or are you the 'lodger' so to speak ...

I'm not on the agreement. Would it be better if I where?

Killmark wrote: »

Your also at risk of being done for benefit fraud if you go ahead. If you have a joint loan then if someone reports you two as a couple then it will almost certainly go against you as you will be financially linked.

Secondly your post sounds as if you are in a mutually reliant relationship and fyi just because you may not be having a sexual relationship doesn't mean you aren't viewed as a couple for benefits purposes.

I don't quite follow; We're close friends looking for a financial solution which we feel would be best addressed together. How can someone report us as being otherwise and how is it fraudulent? Neither of us support the other and the relevant benefit authorities are already fully aware of our living situation.

Killmark

InFi[D]eL wrote: »

I don't quite follow; We're close friends looking for a financial solution which we feel would be best addressed together. How can someone report us as being otherwise and how is it fraudulent? Neither of us support the other and the relevant benefit authorities are already fully aware of our living situation.

I've bolded the relevant parts

InFi[D]eL wrote: »

Neither of us are employed as we are both needed to provide care for her 11 year old child whom is autistic. I however do claim JSA as I am eligible for work and actively searching a somewhat limited market.


Our household income is sizable due to the various benefits she is entitled to; namely disability living allowance (topped up with income support), carers allowance, child tax credits plus child benefit for her other child. We can easily meet a reasonable repayment, but we are worried the fact we are on benefits and not in full time employment maybe held against us. (1552 P/m total)


We are looking for around £6000 to clear our small debts, organize a new car which we urgently need and make a few other needed purchases, plus there is the hellish cost of Christmas approaching.

We are not home owners and we are homed by the council. We also are not willing to secure against gold or other valuables, not that we really have enough assets for that anyway.

We both strongly want to avoid brokers but must raise this the loan amount soon. We are looking at term of 36-48 Months.

You describe yourself as a household and the only part you didn't involve was personal debt. You state you both need to provide childcare and you describe your household income as opposed to personal incomes. It sounds like you could be a couple for benefits purposes.

This is accessed based on linked financial affairs, mutual support i.e providing childcare for free, meals not being prepared separately, time spent together, shopping together, eating together, joint bills etc, this is the same for case for unmarried couples. The reason they have these rules is to stop the argument that people are just housemates but do not live independently of each others affairs.

DCFC79

InFi[D]eL wrote: »

We are looking for around £6000 to clear our small debts, organize a new car which we urgently need and make a few other needed purchases, plus there is the hellish cost of Christmas approaching.

No need for xmas to be a hellish cost at all, you can do things on a budget.

After reading the comment about the hellish cost of xmas i had to respond, theres no need to spend lots and lots of money on xmas, no need to be a sheep and follow the flock and spend spend spend as thats just daft. You need a job to get a loan, could you afford the payments ?

InFi[D]eL

@ Killmark, I see your point. I hadn't considered that.


@ DCFC79 Yes.

InFi[D]eL

Expanding on DCFC79's reply.

I've been running on the assumption that the p/m repayment would be the same as a loan for a single person, is that the case or would it be likely double or in some manor increase?

balmk

I am not going to pass judgement on your relationship or living arrangements, but it sounds like you are going into this with your eyes firmly closed.

My advice would be to make an appointment at your local Citizens Advice to discuss what your rights and legal obligations are both in terms of your living arrangements and your benefits - the last thing you need right now is to be accused rightly or wrongly of benefit fraud (ignorance of the law is no excuse).

It is unlikely that a mainstream lender will offer you a loan as you (not your housemate) are unemployed and your housemate is on a fixed income (benefits), and regardless of this they will not entertain th epossibility of any part of the loan being used to fund Christmas.

Gothicfairy

Why do you need extra money for xmas ? No one should get into debt for just one day, there is no point and lets face it you can buy the toys the day after at half price so just get kiddie something small from Santa on the day and then hit the boxing day sales and explain that Santa got caught in a traffic jam and as the child was such a grown up child he knew they would understand him being one day late.....job done.

Car : get a cheap run around from ebay, gumtree, auto trader..MOT and Taxed can be got for under £500 > I was watching 3 that ended for less then that and they were legal and ready to go.

Debts : according to your figures they are not that high so just keep paying them back each month and get the balance down that way

What else ?

There is enough coming into the household to pay extra on the debts and if you want shopping help then check the old style board as there are people there living on less the £200 per month with kids.