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Loan - max you can get for salary
I am looking to get a loan to fund a large purchase.
The amount I am looking to get is equal to one years salary (before tax).
I would be quite comfortable with the projected repayments and I have just finished paying off a loan with similar repayments.
Do mainstream lenders have some sort of limit that they will lend to? I appreciate that trying to get a years salary as a loan might be a big ask.
I don't want to put applications in and get rejected.
The amount I am looking to get is equal to one years salary (before tax).
I would be quite comfortable with the projected repayments and I have just finished paying off a loan with similar repayments.
Do mainstream lenders have some sort of limit that they will lend to? I appreciate that trying to get a years salary as a loan might be a big ask.
I don't want to put applications in and get rejected.
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Comments
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Do mainstream lenders have some sort of limit that they will lend to? I appreciate that trying to get a years salary as a loan might be a big ask.
Yes and it is nowhere near 1 years salary.
Try a maximum of half of that (as a rule of thumb) and it includes all existing credit available to you.0 -
:oThat is seriously large commitment, is there no way you could save up half first? If anyone will lend it to you that is, as Gb said about half is generally the rule. A few forum users have claimed to have been lent a bit more than half recently though.
How long would you want to pay it back over? How would changes in circumstances affect this like loss of employment?
I was lent £15000 four years ago, when at the time I earned only about £24000, but that was then, and look where it got me, see signature!
Do you mind me asking what it is for, it's not a car is it?ISA £1675
MiniMoohound savings £3685.86 :T Plus £3800 CTF 
'MrMoneyMuststache' my new hero, Martin Lewis my long time hero
Poacher turned Gamekeeper
Roadkill rebel No 52 Aug £1.34p Sept 24p Oct 5p Nov 5p Sealed pot Challenge No 403 £176.66(2014) :staradmin NOV NST No 200 -
I see the half your salary rules mentioned a lot but it hasn't been true for me.
My available credit is just over £22,000, and my salary is around £32,000.
My partners available credit is just over £14,000 and her salary is currently about £8,500, even before she went part time her salary was only £18,000 so not sure what happened there...0 -
Are we talking about available credit or a single loan?
OP, how much did you want to borrow? Personal loans are usually Max £25000.
My available credit was about £50000, and I earned £28000 when I went into meltdown last year owing £39000, but my largest single loan was £15000.ISA £1675MiniMoohound savings £3685.86 :T Plus £3800 CTF
'MrMoneyMuststache' my new hero, Martin Lewis my long time hero
Poacher turned Gamekeeper
Roadkill rebel No 52 Aug £1.34p Sept 24p Oct 5p Nov 5p Sealed pot Challenge No 403 £176.66(2014) :staradmin NOV NST No 200 -
Are you looking for unsecured credit or are you thinking about taking a secured loan?
If you want an unsecured loan, you'd do well to get anywhere near borrowing afull years salary.
Do you have any outstanding credit already? Have you always kept up to date with repayments?0
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