Loans available on low income?

James_B.

Loan_soldier wrote: »

I would love any advice or suggestions on how to raise the money.

Quite frankly I'll consider anything.

Taking on a second job, or a better paying job would be the obvious solutions. No-one reputable is going to lend you £10k on your wages, and anyone disreputable will take everything from you under the threat of violence shortly after you get the money.

Affordability is clearly going to be an issue for you. You earn under £200 per week, so banks will see that you need everything you get just to live.

macman

You cannot possibly expect to borrow £10K (or more!) on an income of £10K, because you will not be able to service the debt.
And how are you going to purchase a property for £10K unless you already have a substantial deposit?
This really doesn't add up.

Loan_soldier

macman wrote: »

You cannot possibly expect to borrow £10K (or more!) on an income of £10K, because you will not be able to service the debt.
And how are you going to purchase a property for £10K unless you already have a substantial deposit?
This really doesn't add up.

I have a very substantial desposit.

If I continue to save I will reach the figure outright, I just wanted to speed things up as I am throwing £400 PCM away at the moment.

My thinking was if I can replace that with a much smaller loan repayment each month, then I would be immediately better off and living in my own place.

Thank you to those with positive contributions.

Brock_and_Roll

My thinking was if I can replace that with a much smaller loan repayment each month, then I would be immediately better off and living in my own place.

True, but there are additional costs associated with property ownership that you don't have with renting to the gap in reality will be much narrower.

James_B.

Loan_soldier wrote: »

My thinking was if I can replace that with a much smaller loan repayment each month, then I would be immediately better off and living in my own place.

On your income, it simply is not an option, as no bank will believe that you can afford to service the debt. If your income (after NI) is £812 per month, and you are spending £400 each month on rent, then this implies that you are left with £412 to cover food, heating, clothes, transport, council tax, etc. How are you managing to save anything after these expenses?

Suarez

What is the value of the property?

Might be better off with a mortgage if your deposit covers most of the value.

Tixy

One of the OPs other threads can be found here - Personal loan to fund the purchase of a flat? which gives a reason for not using a mortgage

macman

My contribution was entirely positive-it just maybe wasn't what you wanted to hear.
I pointed out that your figures as given simply didn't stack up, and James-B has expanded precisely why they don't.
Your only other income is presumably the interest earned on your banked deposit, and once you've purchased the property, that income will cease.

Loan_soldier

macman wrote: »

My contribution was entirely positive-it just maybe wasn't what you wanted to hear.
I pointed out that your figures as given simply didn't stack up, and James-B has expanded precisely why they don't.
Your only other income is presumably the interest earned on your banked deposit, and once you've purchased the property, that income will cease.

Apologises if you thought I was implying your post wasn't positive, that wasn't a dig at you.

I don't earn anything in interest as such it's in Premium bonds, which are hopeless.

Loan_soldier

James_B. wrote: »

On your income, it simply is not an option, as no bank will believe that you can afford to service the debt. If your income (after NI) is £812 per month, and you are spending £400 each month on rent, then this implies that you are left with £412 to cover food, heating, clothes, transport, council tax, etc. How are you managing to save anything after these expenses?

I grow most of my own food and I am a freegan, so my food bill is less than £10 PCM.

I don't use the heating just stick on a jumper, all my clothes are from charity shops, I walk everywhere, I get a reduced rate on council tax which is about £50 PCM.

Basically my outgoings are absurdly small but it is a lifestyle choice, most people would think I am mad but I am just not a consumer.

As such £800 PCM in my context is a relative fortune.

I understand my unconventional lifestyle is probably the very reason I will never get credit but I thought I would ask.

Thanks for all your input.