Trouble getting loan after over extending myself

claret_mike

Moneymash wrote: »

No that's wrong. OP means 10k of which 6k will be for consolidation.

He has borrowed a total of 10k for two different reasons.

But he will potentially still have the £6k overdrafts etc available to him as credit.


Ultimately, if you are going to go ahead with this, close your overdrafts down straight away - none of this in case of an emergency thinking.

You need to consider what happens if you split with your girlfriend etc. What are the consequences of the mortgage and house being in her name. You have no legal rights if you are not married but may be able to protect your deposit through your solicitor. However that may then alert your gf's mortgage co to the fact she has not provided the full deposit..

So is the loan 13% or 20%?

An additional point to consider is ensuring you do not be happy spending everything you earn, you will have a house to maintain, you will have no doubt holidays to save for etc. Get into the habit of putting money away and not spending everything as soon as you have been able to pay your loan off.

It may well be worth considering shortening the length of the loan if you are going to be £300 better off as a result of this mortgage to pay it off sooner rather than later?

Cycrow

Moneymash wrote: »

No that's wrong. OP means 10k of which 6k will be for consolidation.

He has borrowed a total of 10k for two different reasons.

No its not, he has 6K of debt currently.
and is trying to get another 10k. That makes 16k total debt

geoffky

This guy is going to fall hard...Some life lessons are priceless,This will be one.

CKhalvashi

Moneymash wrote: »

No that's wrong. OP means 10k of which 6k will be for consolidation.

He has borrowed a total of 10k for two different reasons.

£6k existing borrowing
£10k new borrowing
£16k total

There's a chance, OP will run the limits again, hence this calculation.

CK

imoneyop

KevinK wrote: »

however I do spend what I have left at the end of the month, therefore 'snowballing' isn't an attractive option for myself.

Perhaps you should consider what you are [STRIKE]wasting[/STRIKE] spending your left over money on.

Save the luxuries for when you can actually afford them.

KevinK

rabbit_burrow wrote: »

As I understand it, you will be paying around £100 on debts than you are now, but your 'rent' will reduce by about £300, meaning that you see yourself as being £200 pcm better off?

OK, what if you split with your GF and you have to move out? Then you'll be paying high rent again PLUS the extra £100 pcm than you are now.

You need to look carefully about what could happen in the future (worst case scenario), and how you would manage.

If you are going to lend/gift your GF money, make sure there is some legal agreement drawn as you won't have any claim on the property otherwise.

claret_mike wrote: »

But he will potentially still have the £6k overdrafts etc available to him as credit.


Ultimately, if you are going to go ahead with this, close your overdrafts down straight away - none of this in case of an emergency thinking.

You need to consider what happens if you split with your girlfriend etc. What are the consequences of the mortgage and house being in her name. You have no legal rights if you are not married but may be able to protect your deposit through your solicitor. However that may then alert your gf's mortgage co to the fact she has not provided the full deposit..

So is the loan 13% or 20%?

An additional point to consider is ensuring you do not be happy spending everything you earn, you will have a house to maintain, you will have no doubt holidays to save for etc. Get into the habit of putting money away and not spending everything as soon as you have been able to pay your loan off.

It may well be worth considering shortening the length of the loan if you are going to be £300 better off as a result of this mortgage to pay it off sooner rather than later?

Thanks for the advice rather than the patronising comments from others.

I've drafted an agreement with my solicitor to protect the event in the (unlikely) event something mentioned here were to happen. I've also opened a savings account and set up a standing order to put away 10% of my wages each month.

Just to clarify the first loan (standard personal loan) was 20% and then I applied for a graduate loan which I have been approved for which is 13% - obviously going with the second option. The first thing I will be doing is closing down all credit cards, store cards and overdrafts when I receive the payment.