£50000 unsecured loans?

sandyacreuk

sandyacreuk wrote: »

Indeed. I'm in the process of doing just that. There's no way this situation is going to beat me......:)

The problem here is how the lenders approach the definition of "Market Valuation". My lender has come at it from a recovery situation so I get a highly risk-averse valuation, where as an Estate Agent is the opposite. This has led to an £85000 discrepancy, which taking all factors into account, I cannot see is justifiable. With my current mortgage plus the consolidation Im looking for, it still works out way below what I know I can sell the house for!.

So, there's my answer isn't it? Probably the best option, but damn frustrating knowing there's equity there.

meer53

sandyacreuk wrote: »

The problem here is how the lenders approach the definition of "Market Valuation". My lender has come at it from a recovery situation so I get a highly risk-averse valuation, where as an Estate Agent is the opposite. This has led to an £85000 discrepancy, which taking all factors into account, I cannot see is justifiable. With my current mortgage plus the consolidation Im looking for, it still works out way below what I know I can sell the house for!.

So, there's my answer isn't it? Probably the best option, but damn frustrating knowing there's equity there.

As you've just realised, Estate Agents don't lend money. At least have a look at the other options.

Billie-S

What CK said sounds like a good plan, but I'm not sure any lender is going to lend you 50 grand that is unsecured.

Also, consolidation loans are a slippery slope. I have known people get say 48 grand worth of debts costing a total of say 2 grand a month - into a consolidation loan of 50 grand (over 25-30 years,) costing 1.5 grand a month, so they can pay off all the debts and have a couple of grand left as a 'cushion.'

Their outgoings are down by 500 quid a month. Sound as a pound.

Then............

Before you know it, they are borrowing on cards again, taking finance, using storecards... Within a year or so, you have an additional 2 to 3 grand on top of the 50 grand, which, 12 months later is STILL 50 grand, as the 12 months of payments so far have not touched the debt. And after 2 or 3 years, there may be a few thousand more debt too. And the fifty grand is still fifty grand.

Can you honestly say that you will never borrow anything else again? Never use your credit cards? Never take finance or use storecards? Not being funny, but getting so much into debt means you have been seriously over-spending.

Not meaning to be judgemental, as I know people don't deliberately get themselves deep in debt, but are you sure about what you are doing? Far better to try and visit someone like stepchange (as a few here have advised,) and see if you can negotiate lower payments, or even get some debt written off.

I am genuinely seriously concerned that you will borrow again, adding to the astronomical 50 grand loan. Making your problems worse.

*disclaimer:* figures are not necessarily accurate: just trying to make a point.

bigadaj

sandyacreuk wrote: »

The problem here is how the lenders approach the definition of "Market Valuation". My lender has come at it from a recovery situation so I get a highly risk-averse valuation, where as an Estate Agent is the opposite. This has led to an £85000 discrepancy, which taking all factors into account, I cannot see is justifiable. With my current mortgage plus the consolidation Im looking for, it still works out way below what I know I can sell the house for!.

So, there's my answer isn't it? Probably the best option, but damn frustrating knowing there's equity there.

I'm not sure if you mean remortgaging here or selling, the latter would wipe out your debt and leave you with some equity, the former would also be dependent on your income meeting the lenders criteria in terms of affordability as well as having the equity that you anticipate.

thad0c

can you take out two £25k unsecured loans from two banks? I thought £25k was the limit and maybe a better chance by asking each bank for less..

iolanthe07

thad0c wrote: »

can you take out two £25k unsecured loans from two banks? I thought £25k was the limit and maybe a better chance by asking each bank for less..

If your income is high enough you might be able to do this, if you applied for both loans at the same time. You'd have to be earning quite a wedge to service a short term loan of £50K though. At 8% APR (if you could get it) over five years you'd be looking at more than a grand a month repayments.

Pixie5740

I'm sure that MSE Martin once said that you shouldn't turn unsecured debt into secured debt.

I consolidate my debt a few times and it never worked. It wasn't until I put together an honest statement of affairs and started snowballing my debt that I started to get anywhere.