Loan is driving me crazy...

MiniOne_3

When I was 19 I took out a £10,000 loan to buy myself a new mini. CRAZY. but at the time I thought it was a good idea and was spurred on by my dad.
Now 23, engaged and looking to buy a house I still have about £4000 left to pay. I even tried to sell my car but unfortunately I live so far away from work that transport is essential.

This loan is like a dark cloud hovering over my shoulders at the moment.
Has anyone had any experiences with getting a mortgage with an outstanding loan? Or does anyone have an ideas as to how I can get rid of this quicker...

Moral of story... DO NOT GET A LOAN!

somethingcorporate

Why not give the bank a call and see if you can pay it back quicker?

BoGoF

How much do you earn?

Any other debts?

How long does the loan have to go?

Did you take PPI?

Tixy

Having an outstanding loan doesn't mean you won't be able to get a mortgage at all. But they will take your loan repayments into account when deciding how much you can afford to repay on a mortgage and therefore on how much you might be able to borrow.

Can you afford to pay more off the loan each month than your current monthly repayment? Check your loan agreement to see if you are able to make overpayments (and so get rid of the loan quicker).

Depending on how soon you want to take out a mortgage and how much you have saved up for a house deposit you might also want to consider repaying the loan in full from your savings. And then build your deposit savings up again.

You could also consider selling the car and buying a cheaper car to get you to and from work.

Jeff_Bridges_hair

I see no reason why it should be like a dark cloud. For starters you are proving that you are able to repay your debts and being so young this can only be a good thing on your credit report.

As has been said just because you have a loan doesnt mean you will be refused a mortgage it may mean that you will have to find a larger deposit to keep payments within what you can afford whilst still having the loan out.

See if you can over pay on the loan or if not just keep saving up what you could afford to overpay and put that to your deposit on your mortgage.

just out of interest how much longer have you got left? after 4 years and paying back 6K already im thinking you may be able to get a nice early settlement figure from them to get rid of in one go as you would have already paid a large chunk of interest on the loan so far.

speak to them - dont be afraid of it - they want your money either way so they would be more inclined to help you to get your money.