Loan wanted for motorhome but low income.

teresacat

Hi everyone.

To be brief- I would like a £20,000 loan to buy a motorhome but my credit rating, though at 98%, isn't good enough for lenders because I haven't borrowed before, and therefore have no previous debts that have been marked as closed.

The motorhome in question is an excellent price for its age & condition and I have been given a rock-bottom quote to live on a site in it. I've done a calculation for a loan with Nationwide and would be making payments of £410 p/month over 60 months. My current rent is £500 a month which I would no longer have to pay, plus I would be cutting out gas, electric, water etc as this is included in the ground rent quote, so I would be lessening my overheads considerably, even with the loan.

I have lived at my current address for over 6 years and have been in my current job over 10 years. I have one credit card (nothing owing) and no debts. I recently joined Experian and was inundated with offers of loans at extortionate rates which I wouldn't touch, and my bank has quoted a repayment of £39,000 on a £20,000 loan which again I'm not interested in.

My problem appears to be that a) I only earn £9,000 a year and b) I've never got myself in debt before. Does anyone have any recommendations as I'll be darn lucky if this standard of motorhome would ever come up again at this price and it would be one step closer to my dream of travelling Europe before I'm too racked with aches & pains to enjoy it!

somethingcorporate

Who is supplying the motorhome? Talk to them, they may have some ideas about secured finance on the asset - this seems a far more likely route than unsecured at that level on your income.

teresacat

Thank you for your response!

The motorhome is via a private seller.

somethingcorporate

That makes it slightly more tricky and a bit out of my depth.

I suggest that perhaps you talk to a motorhome seller (company) and see who they use for secured finance and perhaps then try and contact them directly and see if they do anything for private sales.

teresacat

That's a good idea that hadn't occurred to me. Many thanks for your time and suggestion :-)

Mara69

You are highly unlikely to be offered a loan for more than double your yearly salary. Finance through a motor home seller is likely to be high interest, but is worth a try. Of course, it is a huge gamble. If, for any reason, you cannot live in the motorhome you'll have to factor rent, gas, electric, water rates etc back in. With the loan repayments you'll not be able to afford them and will be up a creek....

teresacat

... with a fork for a paddle. I know :-) I guess I'm just living in hope, even if I die in despair! I'm over 40 now, and if I don't do this soon I'll be too old and decrepit. Apparently we're only here once :-(

Gothicfairy

You would be very lucky ( or not depending on your point of view) to get a loan for a motorhome to live in anyway.
As it is moveable and as such supplies no fixed address for repossession or anything like that.
My suggestion would be :
Buy a very cheap second hand caravan and find a cheaper site ( yours is very expensive sounding compared to round here anyway)
Save up and get a motorhome when you are based on a site as living full time on a site does leave you open to far more offers and knowledge..there are the people who need to sell quick cos they are leaving the country, those that have just bought a house and don't want to pay storage etc.

At the moment I know someone who is selling a full spec US motorhome for 8k so there are things out there if you know where to look and living on a site is the first step to finding the people who know ..

poppasmurf_bewdley

You will have many problems.

a). No one will lend you £20k on a £9k salary.
b). On top of the loan repayment, you will have campsite fees you've not mentioned.
c). The vehicle will need taxing, insuring and maintaining.
d). You will not be eligible for any benefit payments such as Housing Benefit.
e). Are you sure you could live in a motorhome on a permanent basis.
f). £20k is not a lot for a motorhome. Have you checked the price in one of the motorhome magazines?

teresacat

Gothicfairy wrote: »

Buy a very cheap second hand caravan and find a cheaper site ( yours is very expensive sounding compared to round here anyway)

..

I haven't said how expensive it is??

Gothicfairy

teresacat wrote: »

I haven't said how expensive it is??

True, I misread your first post..