Loan agreed in principle

anxious_mum

What they look for is loan to debt/earning ratio, so if you want to borrow, say, 10,000 you should be earning at least 20,000. Plus, if you have any outstanding borrowing, that will be taken into account as well..But, as I said, I'm not an expert.

alwaysworried_2

Do you mean check the bank?

Thank you for taking the time to reply.

anxious_mum

Yes, just give them a call tomorrow. Its all about if they 'think' you can afford the repayments, based on what you earn and what your outstnading loans are. You might think you can afford it, but in a lot of loan consolidation cases, the people who take them out get into more debt because they don't change their spending habits. Taking out debt to pay debt is very rarely the answer.

Maybe you could think about going toi the DFW site and seeing if you can save money rather than taking out more borrowing? xx

BugsyBrowne

anxious_mum wrote: »

BugseyBrowne, why are you always so negative? If you can't give the OP some proper advice, why do you have to comment at all, and in so doing, give the OP extra stress and worry? OK, their credit rating through Experian may be excellent, and this, in itself, will not have any bearing whatsoever so their loan application. I know that, and you know that. The OP doesn't, so why don't you take the opportunity to advise them nicely, rather than putting them down and causing more worry?

Shame on you.

Anxious mum & always worried are you pair suffering the same problem?

anxious_mum

LOL! No, BugsyBrowne, my name is from a long time ago, I'm not that anxious anymore. Alwaysworried is, though, so maybe we could offer some help?

R_P_W

Alwaysworred - I think you just need to try and relax. You have made the application for the loan and they are considering it. The bank will use various means to assess whether they will lend you the money or not. People can make some sensible assumptions on what some of those things are, but each lender will have their own criteria.

You cannot do anything to influence this process at the moment. You have been honest and upfront to what you require the loan for. One of their concerns is that they lend you the money, but you still have your credit cards and you run up debt again in addition to the loan (not saying you will do that, but some people do).

When you rang them up did they give you any indicative timescale for a decision? Give them a ring and ask them but in a calm way.

SnowTiger

R_P_W wrote: »

Alwaysworred - I think you just need to try and relax. You have made the application for the loan and they are considering it. The bank will use various means to assess whether they will lend you the money or not.

I think that's the problem and is why alwaysworried is always worrying. Apparently she's owes £15,000, has been refused a mortgage extension and hubby, who has only just found out about the debt, thinks going bankrupt is the only way out.

She doesn't appear to have any spare cash to throw at loan repayments either. Let's hope her husband does.

https://forums.moneysavingexpert.com/discussion/4307015. I think the loan does look doubtful.

Even if it does come through, it won't fix the underlying issues.