Ahhhh I want a new car!!!

wantnewcar

I'm a homeowner of a property valued £180,000 and have along with my girlfriend a joint mortgage which now stands at £80,000

I earn £25,000 a year and I owe on three credit cards total amount of £15,000

I don't know how I managed to rack up so much on nothing!!!

I checked my credit rating on https://www.checkmyfile.com and came out with a 5 star excellent rating, scoring 941 out of 1000 which means I have a better rating than 84% of the UKs population!

The other day I tried to apply for a personal loan from Direct Line of £20,000 and I was going to use it to pay £5000 off one of the cards and close it and use the other £15000 to buy a new car but they came back a declined me but said I could apply for a homeowner loan.

Ive got no chance of a homeowner loan as the ohter half will not sign up for it as she is debt free and wants to remain that way.

Anyone got any ideas of how I can get to borrow £20,000 or will everyone look at me as being overcommited. Whats the chance of me getting car finance??

CHR15

With £15K worth of debt, why on EARTH do you want to spend another £15k on a car??

why not buy a much cheaper car and concentrate on getting out of serious debt with those cards??

looby-loo_2

In the past 25 years the most we have ever spent on any car was £800. We look out for low milage, long MOT and good service history. I've just bought a red R reg 4 door Micra - boring I know but it gets me to work and back and it only cost me £650.
I sold my previous car which I had had for 4 years (bought for £700) for £400 so four years motoring for £300.
All new cars soon get old!

The money we save [STRIKE]offsets[/STRIKE] pays for school fees. In our opinion a much better investment.

Pay your money and make your choice;)

tom188

with that amount of debt already, any bank would have to be pretty irresponsible to let you have any more.

I suggest you put the thoughts of buying a new car out of your mind until youve made some inroads into clearing your existing debt, which already amounts to nearly a years salary for you.

and the credit "score" you quote is completely meaningless as it only considers your repayment history, not the amount of debt you have already.

freddiejf

as usual on this site - too many use it as an opportunity to 'PREACH' to others about 'this' 'that' 'and the other'!!!

The question raised was how can I get a loan for £20k to help get a car. Can anyone answer that rather than giving answers to a things he never asked for?

tom188

ok then the solutions are either a subprime lender who will allow you to borrow more, but at a far higher interest rate or a secured loan which will be at a lower rate but secured on your property so if you default you could lose your house.

thats an awful lot of outstanding debt for that size salary, so i dont think any normal lender would want to give the op a decent deal, its too much of a risk.

any preaching there?

countrygirl84

Does your wife work? If so, what is her income? It would work better in joint names with that amount of debt owed. Basically, to be a responsible lender, the bank place a 'free income' amount. This means that after your mortgage, credit cards and loan payments you have to have certain amount of money left to 'live on'. You full mortgage payments will be taken into account (even if you and your wife split the payment) and they take 2% of your credit card balances.
I'll use an example:
A guy lives with his partner and has a loan, mortgage and credit card balance. He takes home £1500pm and they have no children. He is paying off his loan with the new loan and buying a new car.
£1500 (income)
- £800 (mortgage)
- £300 (2% of credit card balances)
- £300 (new loan)
= £400 left. This would be declined!

But if you took into account your wifes income:
£1500 (mr income)
£900 (mrs income)
- £800 (mortgage)
- £300 (2% credit card balance)
- £300 (new loan)
= £1000. This would accept as it shows you have more available to live on each month.

Also, when I am keying a loan application you have to deduct any debt you are repaying with the new loan from the application. So, if it asks for you total credit card balances don't key £15k because you will only have £10k when the loan is drawn down. It is just simply checking your affordability.

Message me if I can help you at all.

southernscouser

freddiejf wrote: »

as usual on this site - too many use it as an opportunity to 'PREACH' to others about 'this' 'that' 'and the other'!!!

The question raised was how can I get a loan for £20k to help get a car. Can anyone answer that rather than giving answers to a things he never asked for?

No as usual people actually give a !!!!!! about others and don't want to see them fall in to the same traps they did!

I think they call it compassion. They obviously missed you when handing it out!

southernscouser

wantnewcar wrote: »

I don't know how I managed to rack up so much on nothing!!!

This screams danger signs fella.

You clearly don't/didn't have your spending under control. If you are still adding to your debt now then you will only fall in deeper as your outgoings clearly exceed your incomings!

You need to address the intial problem before you start borrowing anymore.

tesuhoha

Yes because before you know it you'll have £35,000 of debt, a depreciated car and you'll be agonising on the DFW Board how you can pay it all off. Its a lot easier to borrow it than to pay it off. You may still want to borrow the money but at least you have been warned about the wisdom of wanting further debt.

countrygirl84

Just an idea.... why don't you take the loan anyway to repay your credit cards. Then the monthly amount you're saving each month, put into a savings account and in a few months time you will have a car! Then you will have made a dent with your credit card debts and own your car outright!