Loan Feedback please

HotelCalifornia

Hi everyone

Looking at applying for loan either secured,unsecured,other sources etc either 100k or 120k over 30 years periodl looking to pay optimistic 700- 800 per month repayment.

Basically was hoping to get some heplful feedback or opinions on best place to start?As I don't want to get footprints all over my credit file applying everywhere.

I'm security guard 31k gross (25k net) income p.a I'm fortunate to be living at parents and my outgoings are very low ie 350pcm.(which includes 220 per month credit card on 10k debt)

I've purposely been over stringent on my outgoings over past 6 months to prepare for applying for large loan.But not spender anyways. Also a Landlord/joint owner of income producing 6x bed property which produces £4000 net p.a

Only been at my security job 6 months and previously been self employed through property and market trading since start 2010-to 2012 july.Before then always worked full time jobs.

So one my concerns maybe is that I get paid cash in hand weekly and because work so many hours I dont get chance to go the bank so my money doesnt go in regular.I have my wageslips so thinking shouldnt be problem. Occasionally I put £2k in every few months.Other than that keep couple hundred pound in there.

My credit file would say is reasonably good.Not sure if me joint owner of buy to let, would be classed as homeowner in certain lenders eyes.

Property own has 126k mortgage interest only and purchased 138k.Market has levelled off so property probally worth 100-110k I'm being little generous there aswell, depending who listen to value wise.So no equity there.

Just dont know what be best suited to my circumstances.ie Unsecured loan?,Secured? expensive Commercial loan?,etc

Can't go the high street lenders as there rates are outrageous and they dont do up to 30 years period anyways.

(Not to confuse but may apply loan jointly with brother so that would open up can worms figure wise,but joint incomes including buy to let for both us would be 44k net)

Would greatly appreciate any feedback many thanks or where to start.

Kind Regards

Paul
UK

jonesMUFCforever

Do you want this to purchase a property?

If so a commercial or buy to let mortgage is the only way to go IMO.
Nobody will lend you anything of that figure unsecured.

However after saying that IMO you are already well overstretched and may struggle to find anyone willing to lend.

(For one moment just imagine how would you cope if you had no tenants or a damaged property which cost a lot to do up?)

barbarawright

How relevant your present living arrangements for a 25 year loan? Unless you are committing to never leaving home?

HotelCalifornia

Thanks.

No its not for a mortgage.Its for pay off my 10k credit card and refurb my current buytolet to add more rooms and least 3x deposits for 3 x properties.

Dont think I'm overstretched my total outgoings per month is £350.

Which is less than a 1 weeks work just with my job.

Im on 29k net income with greatest respect am I missing somethink?

350 per month yearly is 4200. My property gives me 4000 net per annum thats worst case.

People who worry about them things are the ones who never buy income producing property We have no problems with the property
its runs great since 2009 purchase.

The Buy To Let would pay for 700 per month loan no problem.

I understand lenders are extremely over cautious wether mortgage etc

However I know would get another mortgage buy to let.So hopefully won't be problem getting loan. Perhaps less amount maybe worst case.

Appreciate feedback thanks Jones.

[Deleted User]

sorry NOT a chance

HotelCalifornia

barbarawright wrote: »

How relevant your present living arrangements for a 25 year loan? Unless you are committing to never leaving home?

Hi Barbara

See where coming from,but I also have a room rent free in my buy to let property so its not really a problem. Thanks.

HotelCalifornia

woodbine wrote: »

sorry NOT a chance

Welcome to your opinion... but I 've heard that before many times before I purchased my 8 bed property Thanks.

DCFC79

I didnt think you could use loans for deposits but had to use your own money eg savings but could be wrong.

1StepDebt

HotelCalifornia wrote: »

However I know would get another mortgage buy to let.So hopefully won't be problem getting loan. Perhaps less amount maybe worst case.

What planet are you living on?

You will have trouble getting an unsecured loan of any more than 50% of your income - so it MAY be possible for you to get £15,500.

Note that this is TOTAL unsecured debt and you say you already owe £10,000 on your credit card - bringing your max loan to £5,500.

You say that you're 'not a spender anyways' - how did you rack up a £10,000 credit card bill earning £31,000 and not spending (whilst living in a single room of a HMO)?

You are already in negative equity and are on an interest only loan.

The harsh reality, and the sooner you face facts the better, is that, not only do I not think you'd get a Buy to Let loan, I also doubt you would get a standard residential mortgage until your finances are in a much better position.

Forget the loan, continue to cut back expenses and get rid of the credit card debt. Then, depending on the economic landscape at that time, come up with a better plan for your future.

You also say that your credit file is 'reasonably good'. It becomes laughable at this stage - without a PERFECT record and given your current finances, you'd probably not qualify for a £1000 loan.

1StepDebt

HotelCalifornia wrote: »

Im on 29k net income with greatest respect am I missing somethink?

350 per month yearly is 4200. My property gives me 4000 net per annum thats worst case.

Whilst you may think that it's only logical for a bank to give you the mortgage, it really isn't.

In Northern Ireland and many parts of the mainland UK, mortgage payments required for property comes in at less than the rental for a similar property. Does this mean that the banks should go out and lend to every Tom, !!!!!! and Harry that are currently renting? No.

The banks have a certain amount of money to lend. There are enough people with 10 - 25% deposits looking for residential mortgages (who are less likely to default than someone with multiple BTL properties) to fill the banks appetite for lending. They do not need to resort to lending to people with less than perfect finances to fill their quotas for lending.

barbarawright

HotelCalifornia wrote: »

Hi Barbara

See where coming from,but I also have a room rent free in my buy to let property so its not really a problem. Thanks.

So you intend to spend the next 25 years in a single room? No intention of having a family or other commitments?