Chances of a loan

Edith14

Wonder if you can help.

My other half currently has a loan of £12k that has 4 years left that he took out for home improvements a year ago.

He's looking to get a £20k loan over 5 years consolidating the £12k with a different bank to where we currently have the loan for further home improvements. He's putting through a joint application and he's on £34k and I'm on £18k.

The thing is I have £8500 cc debt which I make payments to each month never missing a payment but he's not aware of this. Will this hinder the application? my rating on credit check is 3/5 and my other halfs is a really good credit score.

We can afford the slight increase in monthly payment that this new loan will be?

Do loans do affordability checks or do they just carry out credit checks ?

We also have a mortgage that we've never missed a payment on and didn't really want to consolidate onto a remortgage over 15 yrs when we can pay it off in 5.

Sorry for rambling.

Thank you in advance.

jonesMUFCforever

You could re mortgage over 5 years - you do not have to go with existing term but if you choose to go down this route - then the mortgage application will ask for all current debts, and they will check and know if you omit any figures.

Foxy-Stoat_3

Edith14 wrote: »

The thing is I have £8500 cc debt which I make payments to each month never missing a payment but he's not aware of this.

He will be when he makes the joint application!

Foxy-Stoat_3

Edith14 wrote: »

We also have a mortgage that we've never missed a payment on and didn't really want to consolidate onto a remortgage over 15 yrs when we can pay it off in 5.

Some lenders wont let you consolidate longer than 7 years, and only allow the amount THEY think you can afford.

He may not be able to get £20K unsecured based on his current debt and earnings.

Tixy

If the new loan application is going to be a joint application then the lenders will look at the current debts, earnings and affordability of you both.

As you both already have sizeable debts then this could mean that you struggle to get accepted for the new loan.

Obviously if you do get accepted for a joint loan then you will become liable for the whole £20k, including his existing debt.

CLAPTON

Edith14 wrote: »

Wonder if you can help.

My other half currently has a loan of £12k that has 4 years left that he took out for home improvements a year ago.

He's looking to get a £20k loan over 5 years consolidating the £12k with a different bank to where we currently have the loan for further home improvements. He's putting through a joint application and he's on £34k and I'm on £18k.

The thing is I have £8500 cc debt which I make payments to each month never missing a payment but he's not aware of this. Will this hinder the application? my rating on credit check is 3/5 and my other halfs is a really good credit score.

We can afford the slight increase in monthly payment that this new loan will be?

Do loans do affordability checks or do they just carry out credit checks ?

We also have a mortgage that we've never missed a payment on and didn't really want to consolidate onto a remortgage over 15 yrs when we can pay it off in 5.

Sorry for rambling.

Thank you in advance.

1. you currently have 18,500 of debts on a joint income of 53,000
and wish to increase the debt to to 28,500
that's a pretty high ratio of debt to income for unsecured debt

2. a remortgage will probably be the cheapest overall way and there is no reason why 15 year isn't reasonable as you can simply overpay each month and effectively repay over 5 years as you wish

3. be very careful how your OH fills in the 'joint' application: if he is asked about your debts and he fails to mention your CC debts (which he doesn't seem to know about) this might be considered as fraud. He will not thank you if this turns out to be the case.

Nasqueron

Combined salary 52k
Combined current debt £20500 approx

New debt £40500 (the bank have no way of knowing you will not just spend the 20k on something else so they will treat it as £12k + £20k not £8k more)

That debt vs salary is very high and most banks will probably reject it as unaffordable