Joint Loans

Billy_10

Hi all,

My girlfriend and I are looking to obtain a joint loan for somewhere in the region of £10,000 - £15,000 over a period of 5 years.

Being a customer of Halifax i tried them first but apparently we both need to have Halifax accounts. The plan is to set-up a joint account but if we do that we can only apply for a joint loan 6 months after creating a joint account with Halifax.

The problem is, we have a little one on the way and among other financial commitments including unforeseen circumstances, we need a loan fairly sharpish.

So, does anyone have any advice or know of any good companies which offer good rates on joint loans where you both don't have to be existing customers?

Any help would be greatly appreciated,

Thanks

gb12345

Billy_10 wrote: »

So, does anyone have any advice or know of any good companies which offer good rates on joint loans where you both don't have to be existing customers?

There are plenty of companies that offer "good rates", but whether you and your girlfriend would qualify for them is another question.

More info is needed, such as -
What do you both earn.
What other credit do you each have.
What is your credit history (not rating) like - any red markers?

John1993_2

If it's "need" as opposed to want, then how can you not know to within £5,000 how much is needed? Surely the first step should be working out how small a loan you can get away with, then looking very carefully at everything you spend and earn, and working out how to get by borrowing a few thousand less than your first estimate?

Is the plan really to borrow £15,000, and then have a few "treats" with the extra? If so, please, please think again. Don't bring a child into the world at the same time as its parents step into a bad world of spiralling debts.

Billy_10

John, first of all I appreciate your concern and your advice. Believe me, there are no treats going to be purchased.
We have recently got a mortgage on a flat - the total value being £44,100. The flat needs a fair bit of work done though...new bathroom, e.t.c. The plan is to improve it and eventually make a profit on it.
If we didn't have such a low mortgage, which amounts to around £175 a month, there is no way that I would dream about taking a loan out.
The way I look at it is that the mortgage combined with loan repayments could amount to just above £500 a month; which is still probably less than if we were to have a mortgage on higher priced property.
Ideally, with the home improvements money spent, I would like to have around £1000 to be kept by in case of emergency while my girlfriend is on maternity. Being new to parenting I like the thought of having a slight peace of mind, of having a reasonable amount of money on standby.
I hope that this gives you a clearer picture John.
Thank you again for your response.

fwor

Billy_10 wrote: »

I would like to have around £1000 to be kept by in case of emergency while my girlfriend is on maternity.

I suspect what John may be alluding to is that this £1000 which you refer to as "on standby" is costing you money all the time you have it.

Having ~savings~ in place in case of emergency makes sense, but having borrowed money "available" does not, and should not be giving you any peace of mind. The "availability" is pure illusion, because it's just debt and nothing more. And the fact that it is just sitting there in your account is likely to tempt one of you into spending it.

When it comes to borrowing money, the general rule is that you should borrow as little as you need, when you need it.

Tixy

Billy_10 wrote: »

We have recently got a mortgage on a flat

How recently? are you on the electoral roll yet at the new place? and is this reflected on your credit files yet?
If not then I would wait until you are before trying to apply for credit.