how to apply for 40K loan

tiggy748_2

We need 40K.

Both self employed - accounts show 20K income, approx 9-10k each, but this years accounts are showing 40k income.
Hubby has a few late payments on mortgage account an IVA (paid off 9 years ago, but broker says they can still find this so might affect him)
I have two defaults.
we have budgeted for paying for all other loans overdrafts and debts -2.5K and will possibly clear them very shortly.

We want to buy a house. We have 30k deposit and we need the 40K loan to purchase and renovate the house we want. as the amount we want is so small we cant get a mortgage. The current house price is 50K however when done up would be 100K. so min LTV would be 60%.

Do we apply for a 40k secured loan in his name or my name, or joint? (was wondering if my history is better than his or visa versa) we could just manage on 30K so do we try unsecured for 15k in his name and 15k in my name and just save up for the rest of the renovation work at a later date?

or do we sell everything (horses, furniture and belongings no longer wanted) to raise another 7K -9k (total 37-39K) and try applying for credit cards for the other £15K to at least purchase the property and get the electrics and heating sorted!

is it better to clear all debts first before applying for more? will this delay the purchase of the house at all due to getting it shown on credit file, or would "promise to clear debts upon purchase with X money" from solicitor be insufficient?

interestingly enough we can get a 70K mortgage, but not a 40K one....

DCFC79

Is this post any different to the 1 made this morning ?

You posted this morning about selling the horses so have you changed your mind on that ?

Could have just edited the other thread.

jonesMUFCforever

The only personal loans for that amount will be secured.
Have you got any security?

tiggy748_2

jonesMUFCforever wrote: »

The only personal loans for that amount will be secured.
Have you got any security?

the house? We cant get a mortgage as the amount we need is too low, so a secured mortgage used to purchase the house might be the way forward.

I just wanted to know how is the best way to source this amount of money and do we put it joint names, single applicant etc based on credit history? I want to apply for the right loan first time as we have already applied for two mortgages last month.

tiggy748_2

DCFC79 wrote: »

Is this post any different to the 1 made this morning ?

You posted this morning about selling the horses so have you changed your mind on that ?

Could have just edited the other thread.

very different - this time i want to know the best way of getting the loan - my name, husband name, joint names, secured loan, unsecured loan, credit cards.......

The other post was about a secured loan being a possible solution for what we need as all i find on this was in regards to secondry security on primary security

We have 30K, we could get together another 10K (from the horse sale) meaning we could get away with anywhere from 10K (just to buy house then do up slowly) to an ideal 40K to renovate house - keeping back 10K for
a car and boat (husband fishes for dinner!) and as we have worked for 60 hours a week, 52 weeks a year for the last 7 years to be in this position (wiped off 80K debt) we think we also deserve a holiday - so this what the horse money was allocated for.

also no one was commenting on that thread - so a different title reworded sometimes helps

~Beanie~

Why is the amount too low for a mortgage? My mortgage was only for just over £39,000 and this wasn't a problem for the Halifax.

scottishblondie

I think you need to try some other mortgage lenders. As Beanie said, you should be able to get a 40k mortgage.

Herzlos

I doubt the issue is with the borrowing being under the mortgage threshold, as I'm not aware of one and it doesn't make sense (it's very low risk), but may be because of the additional money you're wanting to renovate the place.

You're saying you've got a 30K deposit and want to borrow 40K, which brings you up to 70K on a 50K house. Is the house in a useable condition already? Banks may not be interested in a mortgage if it's not in a condition where they can sell it should you default (i.e. no working kitchen or bathroom).

It could also be because they don't want to offer an 80% LTV for some reason (it's valued at 50K now, it doesn't matter what it'll be valued at when it's fixed), or that they don't want to lend more than the asking price.

So I'd look at:

Seeing if you can get a mortgage for just the 50K, with both the full 30K deposit, or with a smaller 10-20K deposit, and get a loan for the rest, using some of your deposit money to avoid that.

Have you spoken to a mortgage advisor or are you just enterring figures on a bank website? If you haven't seen an advisor yet, do that first.

dandig23

I agree I can not see the the issue is with the borrowing being under the mortgage threshold, the proposition is such low risk and there is none that I know of. Also always go with a IFA not a bank, even if its to get some free advice.

tiggy748_2

we are self employed and dont have the best credit history meaning a sub prime mortgage. We have been accepted for a mortgage of 87K though a brooker, on a different house however they wont lend below 70K.

Id be very happy to put down 20K depoist take the rest as mortgage then use our surplus for renovations. There is a bathroom and kitchen and a couple live in it, but its dreadfully dirty and worn out, they didnt even bother picking up the dirty pants in the bathroom when we viewed!

They want a quick sale - the house was originally up for 30K more they didnt get an offer so slashed the price - easier than tidying up evidently!

CherlokHomes

You have defaults up to your eyeballs and neither of you pay the Mortgage on time and you want a loan.