loan until i sell property

dani33

hi i am currently looking at getting asecured loan until i sell my property, have built up alot ofcredit card debt, and need it to tide me over for max of 6months. i was asked on my application if my property was currently on the market. would they still lend and how would tthey know?

dani33

Its just i cant find any info anywhere as to whether a secured lender will lend if my property is on the market and i dont want to ask to jeopardise my application. thanks

jonesMUFCforever

You say max of 6 months - why is this?
Are you certain that your property will sell?
If so why not wait and repay from the house sale?

Have you also seen the small print associated with secured loan lenders such as Picture or First Plus?? The early settlement fees are huge!!

If you insist that you want to proceed then approach your existing mortgage lender to see if they will lend you the money.
If they won't forget the idea.
The charges and fees will almost certainly make it more expensive for you than waiting for the house to sell.

dani33

i have spoken to central capital who have quoted me a loan of 14,500 at 11.5 % for 20 years, seems expensive compared to others i have looked at on money supermarket, considering i have a good credit score.
Firstplus who quoted 6.2% on their advert wouldnt lend to me as my income is under 20k.
I am not very clear on the early repayment charge, whiich on the form states if loan is settled within 5 years i would pay £943.53 for every 1000 borrowed. obviously i would have made 5 years repayments on top.what would i pay if i settled in a years time? if someone can break down the early repayment figures and how they are arrived at i would be grateful, as on my understanding loans of under 25k could only be subject to 2 months interest, have i misunderstood this ?

jonesMUFCforever

If what you have written is true then getting a loan of £14500 and repaying early would mean an ESC of £13673!

If that is the case then you are totally bonkers!

Get proper advice on whatever loan you sign up for and ask someone to explain everything to you. You must do this BEFORE getting a loan.
Doing so after will double your debt!!

I also think you are confusing unsecured loans with secured ones.
You are right that an unsecured personal loan can only charge a maximum of 2 months interest as penalty for early settlement.
There is no such limit for secured loans.

dani33

do you have any advice where i can find a reputable loan broker?

jonesMUFCforever

Have you approached your existing lender as I asked you in post#3 ?

I really do think that any secured loan over such a short timespan as 6 months to a year is the wrong option for you and will cost you a lot more than just waiting for your property to sell.
If you are in financial difficulties then go to CAB or National debt helpline and ask them to write to your creditors to accept lower payments until you sell.

dani33

I approached Natwest who said they would not allow remortgage for consolidating debt but they could offer a homeowner loan at 7.5 % they told me i would be subject to 2 months interest if i repaid earlier than term, yet this is also a secured loan.
also the person at firstplus said this was the case yet it isnt from the figures on the form!

jonesMUFCforever

dani33 wrote: »

I approached Natwest who said they would not allow remortgage for consolidating debt but they could offer a homeowner loan at 7.5 % they told me i would be subject to 2 months interest if i repaid earlier than term, yet this is also a secured loan.
also the person at firstplus said this was the case yet it isnt from the figures on the form!

Well I would be inclined to trust Nat West much more than First Plus.

You still have not fully answered my query of whether you are in financial difficulties - if so being given figures for a loan and being accepted are two very different things.

dani33

i am currently in financial difficulty until i sell my property, i f i get a loan and several months before the loan amount has been used i still have not sold my property i will rent my property and move in with my parents, this is a worse case scenario. also if i couldnt sell or rent in this period (very worst scenario) i would have enough disposable income to cover this secure debt just about

dani33

i am not the sort of person to be sucked in easily to cons have experienced them to often. with cca regulations i would have thought that companies would be equally trust worthy or am i wrong>?