loan advice - retired

luceffc

HI there,

I'm looking for some advice on loans for the retired. I have been searching on the internet for days for advice but cant quite find the answer so I am hoping someone here might have the info im looking for!

I am 63, have no mortgage on my house worth around 360k. No debt, just the usual monthly utility bills and food etc. I want to apply for a 25k loan to repay over 5 years. Half for myndaughters wedding and half for home improvements before I sell. My daughter is unable to get a loan as they habe only just brought thier house on one of the 95% mortgage schemes. I cant get a secured loan as my mortgage is paid off and have been advised against re-mortgaging due to my age and no employment income.

So my question is, will I be approved for a 25k loan over 5 years (it will be paid off before then will the house sell, not that this will matter to them) with excellant credit rating, no debt and a 30k per annum pension, at 63? Im worried sbout applying and being declined effecting my credit rating.

Thanking you in advance for your help!

fuzzgun19

If you have no 'debt', a lender may see no credit history, and this may affect your chances of obtaining credit.

luceffc

Hi fuzzgun19,

I do have credit cards that I have had for many years and are used occasionally but always paid off within the month. Do you think this will make a difference?

Thanks very much for taking the time to reply

dealer_wins

I think you have a good chance of being accepted, and at the best rates too.

Just be aware there are lots of threads on here where family members have not paid back loans, causing problems and family breakups.

luceffc

Hi dealer wins

Thank you so much for taking the time to reply. Lucky enough for my daughter she doesnt need to pay it back as it is veing knocked off what she would have got ehen the house sells!

Do you know what annual income is required for a 25k loan? Thats probably my main concern as I only recieve a personal pension.

Thanks again

Pixie5740

As a general rule of thumb lenders won't let you borrow more than 50% of your income. However, I'm not sure if lenders are more lenient when it comes to borrowing money for home improvements.

If you try and soft search for a Nationwide loan then the outcome of that might give you a reasonable indication of whether or not you're likely to be accepted for a £25k loan.

luceffc

Hi pixie5740

Thank you for taking the time to reply. This was my wrroy to ne honest. I was wondering whether there were any specialist providers I could speak to who would consider affordability rather than the loan to earnings ratio? How would i conduct a soft search?

Thanks again

PeacefulWaters

A 10 minute chat with a reputable local mortgage broker should get you to a point of knowledge on the likelihood of acceptance.

Pixie5740

luceffc wrote: »

Hi pixie5740

Thank you for taking the time to reply. This was my wrroy to ne honest. I was wondering whether there were any specialist providers I could speak to who would consider affordability rather than the loan to earnings ratio? How would i conduct a soft search?

Thanks again

This is the link to the Nationwide loan quote.

https://olb2.nationet.com/PLPOS/PointOfSaleApplication_InitialiseApplicationProcess.aspx?ID=38adf4607839e16ba43e553964c914c62c5&branchid=

It will give you a quote by doing a soft search so shouldn't show up on your credit file.

luceffc

Hi all, thank you for all your replies. Im wondering whether a better option might be to apply for half the amount in my name and my partner to apply for the other half in thiers? They are also retired and recieve a pension but as the borrowing amount will be a lot lower do you think there would perhaps be more of a chance of success?

I would love to speak to a professional advisor as am getting myself in a right muddle! Im just unsure where to start. Google just keeps coming up with debt managment agencies (although is likely that is user error!)

luceffc

Pixie5740 wrote: »

This is the link to the Nationwide loan quote.

It will give you a quote by doing a soft search so shouldn't show up on your credit file.

Hi Pixie5740

I went through this process and it gave me both a quote for a 20k loan and a 25k loan all which were affordable but im now not sure if this automatically means I am likely to be approved or if this would just be the same process for anyone? Do you know if your given a quote after completing all the details if that then means you will be accepted?