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Loan needed, but need advice re other loan i have! Advice please.
confused!_13
Posts: 80 Forumite
in Loans
Hi there,
I am posting this on behalf of someone who doesnt have internet access at the moment. Hope some one can shead some light on it for us!
This post may be a little bit long, but i know the more info i give the better the chance of responses being helpful!
Basically, my other half had a loan with his bank (£10,000), at a silly APR of 14.4% - despite his credit rating being fine. He just didnt shop around - lazy, i know!
In him telling me this, and finding no major redemption fees i urged him to change the loan to a more attractive APR, so he did. He owed £7000 on the loan and changed it to tesco in November 2006. - Payments were deferred for 3 months, started in Jan 2007@ 200 per month
In Jan 2006 he decided to look at his finances in detail and see about paying off other bits and bobs off ie. CC, OD etc and borrowed £4,500 from his bank at a slightly better APR. He was going to put this on his Tesco loan, but they told him he would be in a position to do this only in June this year. So he went with his bank, £111 a month
so, now he owes £11,000! - paying back £311 in total a month accross both loans
We were going to sell our property,and move after doing some minor work to the house, mainly decorating, we got a proper surveyor in to look around (not an estate agent, we paid a surveyor to give us the full sp on the house etc) We have discovered that a 2 major jobs needs doing on the house, and it needs doing ASAP, every month we leaves it means its going to cost more in the long run.
Even with savings etc we still need to find £5,000!!! Re-mortgaging isn't an option at the moment for us.
My other half is looking into consolidating both the loans he has and adding the 5k onto it so he has one monthly re-payment.
His credit rating is good, he has missed a repayment about 2 years ago on his mobile phone bill, as the DD hadnt been set up properly but apart from that all is ok.
My only concern is isnt it going to look dodgy that he has only had 1 loan since Nov and the other since Jan, but now wants to consolidate them and borrow more?
I know he can explain to lenders the what, whys etc but i dont want him just applying and damaging his credit rating, or taking a worse APR than he can get just for the sake of it.
Although he will have £16,000 in unsecured loans (OMG!!) On a brigter note, he owes no money to anyone else, and his monthly out goings including both the loans he has currently is around £800 a month, this 800 also includes household bills, mortgage, car insurance etc he earns approx £30,000 P.A. and has been employed by his employer for 4 years.
His seems to think that the lender will look at what he can afford to pay, i think they will look at all the above too!!
we have been on moey supermarket and filled in teh smart search, but it doesnt go into enough detail to tell them re the above, so i dont want him just applying becasue the pc screen says he has a good chance of being accepted!
Anyway - basically my questions are
1. Does he stand a cahance of getting a loan -taking into account the above he would want it over say, 10 years with the option to overpay. He is due a lump sum from work before the end of the year that would cover the work, but the surveyor says the work needs doing ASAP and if we wait we risk more damage. we have sought 2nd and 3rd opinions on this and all 3 say it needs doing so waiting isnt an option
2. Who woud be the best lender to approach considering the above?
3. Am I just being dramatic by telling him i think lenders wont look favourably at him considering the above!
Thnaks Guy, as always!
I am posting this on behalf of someone who doesnt have internet access at the moment. Hope some one can shead some light on it for us!
This post may be a little bit long, but i know the more info i give the better the chance of responses being helpful!
Basically, my other half had a loan with his bank (£10,000), at a silly APR of 14.4% - despite his credit rating being fine. He just didnt shop around - lazy, i know!
In him telling me this, and finding no major redemption fees i urged him to change the loan to a more attractive APR, so he did. He owed £7000 on the loan and changed it to tesco in November 2006. - Payments were deferred for 3 months, started in Jan 2007@ 200 per month
In Jan 2006 he decided to look at his finances in detail and see about paying off other bits and bobs off ie. CC, OD etc and borrowed £4,500 from his bank at a slightly better APR. He was going to put this on his Tesco loan, but they told him he would be in a position to do this only in June this year. So he went with his bank, £111 a month
so, now he owes £11,000! - paying back £311 in total a month accross both loans
We were going to sell our property,and move after doing some minor work to the house, mainly decorating, we got a proper surveyor in to look around (not an estate agent, we paid a surveyor to give us the full sp on the house etc) We have discovered that a 2 major jobs needs doing on the house, and it needs doing ASAP, every month we leaves it means its going to cost more in the long run.
Even with savings etc we still need to find £5,000!!! Re-mortgaging isn't an option at the moment for us.
My other half is looking into consolidating both the loans he has and adding the 5k onto it so he has one monthly re-payment.
His credit rating is good, he has missed a repayment about 2 years ago on his mobile phone bill, as the DD hadnt been set up properly but apart from that all is ok.
My only concern is isnt it going to look dodgy that he has only had 1 loan since Nov and the other since Jan, but now wants to consolidate them and borrow more?
I know he can explain to lenders the what, whys etc but i dont want him just applying and damaging his credit rating, or taking a worse APR than he can get just for the sake of it.
Although he will have £16,000 in unsecured loans (OMG!!) On a brigter note, he owes no money to anyone else, and his monthly out goings including both the loans he has currently is around £800 a month, this 800 also includes household bills, mortgage, car insurance etc he earns approx £30,000 P.A. and has been employed by his employer for 4 years.
His seems to think that the lender will look at what he can afford to pay, i think they will look at all the above too!!
we have been on moey supermarket and filled in teh smart search, but it doesnt go into enough detail to tell them re the above, so i dont want him just applying becasue the pc screen says he has a good chance of being accepted!
Anyway - basically my questions are
1. Does he stand a cahance of getting a loan -taking into account the above he would want it over say, 10 years with the option to overpay. He is due a lump sum from work before the end of the year that would cover the work, but the surveyor says the work needs doing ASAP and if we wait we risk more damage. we have sought 2nd and 3rd opinions on this and all 3 say it needs doing so waiting isnt an option
2. Who woud be the best lender to approach considering the above?
3. Am I just being dramatic by telling him i think lenders wont look favourably at him considering the above!
Thnaks Guy, as always!
0
Comments
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Sounds easy to me. Ask the present bank first as they already know him or go to http://www.remortgages2.co.uk and apply online comparing loans.
Regards
JoeKI am an Independent Financial Adviser.Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0 -
So if he has 1k a month free, would it be possible to just batten down the hatches for a year and pay the whole 11 k off?
down the consolidation road lies more problems.0
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