Where do I stand with loans.

thomasmurphy

My circumstances are as follows...

I have no job but receive a monthly net income of £1,000 this is guaranteed to continue for the foreseeable future. There is no rent, mortgage, utilities or council tax payable on my part. Fixed monthly costs (living) is roughly half that amount.

I am 35 and took out a loan with a Spanish bank last November for £5k at 11.9% (24months) and a 0% (17months) balance transfer for £2,750 at the same time. Payments are not a problem but I feel that it would be in my interest to secure a better rate (do they start at £7.5k).

When would be the best time to approach either my current lender, after 6months perhaps or ?Zopa. What are the chances of me securing this to pay off the existing £5k and use the other £2.5k to purchase a further 15,000 shares in addition to the 45,000 shares I already own in same company that I have stock in that is paying annual dividends of ~4p per share this alone will clear the outstanding credit card when the balance is due in roughly a year.

Serious question... thank you.:cool:

camuk81

Can you prove the income is long term? The difficulty you have as you have no job banks may be wary

thomasmurphy

camuk81 wrote: »

Can you prove the income is long term? The difficulty you have as you have no job banks may be wary

2/3rds of my income is derived from being part of an insurance syndicate and the money has hit my account as regular as clockwork each quarter since 2007. In that time there has only been one pay out and the subsequent margin call was so small as to be inconsequential in the grand scheme of things.

More recently, I have diversified into other areas of cash risk management where I get the remaining 1/3rd of my income through dividends.

Other assets are non-paying but underperforming and I don't wish to liquidate these positions.

Wutang_2

regardless where this tenuous sounding minimal income comes from, you need a provable income first.

Also, are you saying that you also spend £500 on living expenses?

And finally, are you for real? Serious question

dealer_wins

Just overpay as much as possible each month, and you will be debt free in under 2 years.

No lender is going to offer you a loan, because as much as you see your income as guaranteed, they wont.

thomasmurphy

Wutang wrote: »

regardless where this tenuous sounding minimal income comes from, you need a provable income first.

Also, are you saying that you also spend £500 on living expenses?

And finally, are you for real? Serious question

There's nothing tenuous about my income.

I don't wish to get drawn into my personal expenditure and don't feel £500 is unreasonable considering my monthly shop came to £200 excluding perishables such as milk, eggs and bread??

Short term financing is what I need not disparaging remarks.

Thank you.

thomasmurphy

dealer_wins wrote: »

Just overpay as much as possible each month, and you will be debt free in under 2 years.

No lender is going to offer you a loan, because as much as you see your income as guaranteed, they wont.

That was the plan anyway, to be debt free in two years. It's half the amount it was a few years back. The more cheaply I can do this the better though. I've been investing my excess in undervalued shares as opposed to overpaying and my position is fairly strong through this strategy of diversification.

antrobus

Wutang wrote: »

regardless where this tenuous sounding minimal income comes from, you need a provable income first.

There is nothing tenuous per se about being a Lloyd's name - which I presume is what the OP means when they say that their "income is derived from being part of an insurance syndicate". And such an income would be easily provable.

Wutang wrote: »

And finally, are you for real? Serious question

I have no idea myself. This is the internet after all.

thomasmurphy

antrobus wrote: »

There is nothing tenuous per se about being a Lloyd's name - which I presume is what the OP means when they say that their "income is derived from being part of an insurance syndicate". And such an income would be easily provable.



I have no idea myself. This is the internet after all.

Thanks. This pretty much sums up where I am at. I had the foresight to invest in a niche that my brother-in-law practices law and while it sounds like money for nothing I expect this income stream to dry up when he retires in twenty years as no doubt the law firm he is a partner in will be wound up or sold on and this is who 'we' serve. Without buying additional stakes (and that is not an option as all others are by and large the wives of said partners) it is likely to remain the same and inflation will do its work on the purchasing power.

Anyway, I digress. The bank was happy with this at the time of the last application as provable income back in November + I had a part time job taking OOH calls for a doctors though I jacked that in as I couldn't cope with the office politics and could afford (just) not to do it. So then all my borrowings were half my gross income, now it's more like two thirds.

DCFC79

If you were to get a job you could repay the loan off in less than 2 years by overpaying. Ill be amazed if you do actually get another loan.

thomasmurphy

DCFC79 wrote: »

If you were to get a job you could repay the loan off in less than 2 years by overpaying. Ill be amazed if you do actually get another loan.

I could 'maybe' over pay by an additional £250 a month but I don't want to hurt myself doing so. I'd rather be time rich and cash poor besides I can think of other things to be doing in the day time, mostly sports and the season is upon us... hence my last job was nights and the two previous to that were as well.

I would consider any type of work outside of 9-5 anyway just to give me a sense of purpose.