Loan needed - maternity leave???

KELY

Hi all,

I am currently on mat leave and only bring in £600 per month, and my OH earns £388 per week, after tax and earns overtime of approx £150-200 per month. We're looking to lend £15000 or possibly more if we can, in order to consolidate £9500 worth of debt and the rest for home improvements (garage conversion and windows mainly) After going through my application with FREEDOM FINANCE I sent off our wage slips and the lady I spoke to said that my mat leave would no count and they'll take OH's wage into account only, she did the sums and said that we'd been approved for £15,195 and all was fine and we were having it at 15.69% and secured on home. After sending off wage slips, we have now received a call to say we can't go ahead due to me being on mat leave and Oh not earning enough. After I complained that the lady I spoke to said my OH earnt enough and mat leave didn't matter, they have passed it to their underwriters.

I am so angry because we really need to get our monthly repayments down and OH is on my case to go for a loan that's 23% just to get them paid off (they're all his debts) but it's only to cover his debts and not home improvements.

Do any of you lovely people know any lenders where we'd get approved based on our circumstances, or possibly without showing what we earn? (or me in particular) Lloyds offered my Oh a loan by himself for £20000 but interest is 28%

jaydeeuk1

You shouldn't be angry, you should be hugging the woman that refused you a secured loan. Getting more debt to pay off debt, especially when it isn't yours, is ridiculous. The helpful people will be along soon asking for SOA and will sort you out.

CLAPTON

KELY wrote: »

Hi all,

I am currently on mat leave and only bring in £600 per month, and my OH earns £388 per week, after tax and earns overtime of approx £150-200 per month. We're looking to lend £15000 or possibly more if we can, in order to consolidate £9500 worth of debt and the rest for home improvements (garage conversion and windows mainly) After going through my application with FREEDOM FINANCE I sent off our wage slips and the lady I spoke to said that my mat leave would no count and they'll take OH's wage into account only, she did the sums and said that we'd been approved for £15,195 and all was fine and we were having it at 15.69% and secured on home. After sending off wage slips, we have now received a call to say we can't go ahead due to me being on mat leave and Oh not earning enough. After I complained that the lady I spoke to said my OH earnt enough and mat leave didn't matter, they have passed it to their underwriters.

I am so angry because we really need to get our monthly repayments down and OH is on my case to go for a loan that's 23% just to get them paid off (they're all his debts) but it's only to cover his debts and not home improvements.

Do any of you lovely people know any lenders where we'd get approved based on our circumstances, or possibly without showing what we earn? (or me in particular) Lloyds offered my Oh a loan by himself for £20000 but interest is 28%

it certainly makes sense to try to reduce the APR of the debts of 9,500, but s seems like madness to try to borrow another 5,500 when on maternity leave.


what are the debts and what are the APRs?

KELY

Debts are overdraft of £2000 which the bank has asked for full payment within 2 weeks, loan at 28% Apr and credit card at 30% Apr, so we need the loan, and we need new windows due to damp coming through and the house is freezing due to them.

KELY

I wouldn't take anything out we couldn't afford. We can comfortably cover the repayments with me goimg back part time.

Denene

Your post suggests that you are moving an existing unsecured debt to a secured one, which I believe is generally considered a bad idea.

At the moment, I think the worst that could happen is your partner's credit rating being wrecked, and having to use a debt management plan or (perhaps) bankruptcy?

If you take a new secured loan, you risk losing your family home. Even if you can make the repayments now, your circumstances could change in unpredictable ways, at any time.

DCFC79

Yes it is considered a bad idea to move unsecured debt to secured debt.

dano17439

why don't you go back to work early and start earning again? This will help your situation. You'll be surprised what benefits you can get to help with childcare costs

Gaz83

Your previous posts suggest that your idea of home improvements include adding a porch to your house.

You are completely bonkers if you think taking a secured loan to pay off someone else's unsecured debts, and adding thousands to perform a cosmetic facelift to your house, while you're on maternity leave, is a good idea.

redpete

It is not helpful to consider getting a new loan will result in 'paying off' the existing loans, it is just transferring them to slightly cheaper (but still expensive) loans.

Thrugelmir

KELY wrote: »

Debts are overdraft of £2000 which the bank has asked for full payment within 2 weeks,

Highly probable that your application was declined on the basis of credit history then. Lenders have to lend on an affordable basis and act responsibly. Securing additional debt against your property would be neither of these things.