does not seem fair

sarah1987_2

hi first timer here. have had to pack in work through ill health and has taken a while to stop spending so now got some debt we want to consolidate, do not understand banks, we have a lot of equity in our house and have never missed paying a bill. we have looked at a loan so we can pay off some debt and itwill bring our monthly out goings down a lot. so what i am asking is does anyone know how we can get a loan as banks do not look at what you pay out each month and the fact we have not missed a payment for years. does not seem fair as they do not look into the fact that we can make the payments when you have people (like some friends of ours) who claimed bankruptecy because they have mortgaged up to the hilt. sick of hearing them say how much better they are off now:mad: when they spent the money in the first place, so any advice would be much appreciated.:T:T:j:j

pauletruth

to start with borrowing to pay borrowing is really not wise.

your unemployed due to ill health how are you planning to cover this new borrowing.

what are the debts and how much.

a debt management plan maybe better than trying to get a loan.

even if you were working if your total loans are more than 50% of your annual income you have no chance of a loan.

please dont go to a loan broker you will be throwing money away. have a look at the debt free thread

chalkie99

You stopped earning but kept on spending and you think the banks aren't fair? :huh:

If the bank gave you a loan against the equity on your house and then had to repossess the house because you still were not earning do you think they would be fair then?

If you want to use your equity and have no wage coming in then your best option is to sell up and buy something cheaper.

poppasmurf_bewdley

Both the above are very good pieces of advice.

Eonel

If you have lots of equity in the house then sell it & downsize. This will give you cash that you can use it to pay down you debts. From what you say, you now have spending under control & will not repeat the situation.

Banks do assess affordability of loans by looking at your earnings vs debt. You are off work, so likely to fail this test and you need to look at alternative ways to release the equity in your house.

Apples2

You use the term WE in your post so can't your partner get a loan (assuming he is working)?

No sensible lender is going to give you a loan if you aren't working, simplistically there is no income to make the repayments with.

You say you have never missed a payment but then say you haven't missed one for years... how many years?
If it is less than 6 years, your other half is looking doubtful for a loan (I assume you are financially linked through your mortgage).

Can't argue with your comment on BR, I know of two sisters, one went BR for £19k the other for £16k, both seem to be laughing and taking foreign holidays.... makes no sense but each to their own.

OneLife_OneShot

Life isn't fair, banks are worse but they won't give a loan to a person who is not working.