Will I stop my husband from getting a loan?

Cat_girl_2

Hello,
Can anyone answer my question??
If I have a high level of unsecured debt :(mad:30k) that I am paying regularly and am not in arrears but my husband isn't in debt apart for with one credit card. would it be best for him to apply for a personal loan of 8k himself?
Would the bank check my file? We do have a mortgage together so we would be financially linked....
Would my high level of borrowing prevent him from getting a loan?
I pay off my debts regularly and have a loan that I overpay each month. I have also had a very good rating over the past 10 yrs with lots of paid off accounts etc, no arrears....
Thanks all

YorkshireBoy

You owed £28K on Monday (in your other thread), but £30K now? Forget some?...or racked up some more since then?

The mortgage will mean when either of you apply for credit both your files will be searched*.

Any lending will always be based on affordability, as you probably know. Key to this is income, and since you haven't divulged either of your incomes I'm not sure how anyone could make any kind of suggestion as to what you/he should do?


*There may be some exceptions, ie if you borrow from a bank you've got a long term well-managed current account with, they may lend based on an internal assessment (and monthly CRA fee data).

Cat_girl_2

I earn £28000 he earns £48000
No I haven't racked any more up since Monday. I thought this was supposed to be for advice not unpleasantness.
I have to pay out quite a lot of money for which I don't need t explain but I do work for a living and pay my debts off on time and always have.
Thanks

boo_star

Cat_girl wrote: »

I earn £28000 he earns £48000
No I haven't racked any more up since Monday. I thought this was supposed to be for advice not unpleasantness.
I have to pay out quite a lot of money for which I don't need t explain but I do work for a living and pay my debts off on time and always have.
Thanks

To answer your questions

Yes they will almost certainly check/see your files.

Would your borrowing affect his chances? Probably. They won't know your income from the files but with a £76k income, £30k debt and (potentially) another 8k on top it'll be borderline and he'll likely get high rates if he is accepted (20-25% or so)

YorkshireBoy

Cat_girl wrote: »

I earn £28000 he earns £48000

Since you owe more than you earn (a year), and he is less indebted (with a much bigger income) it's pretty obvious he should apply in his own name (on the slim chance they don't search your file)...isn't it?

No I haven't racked any more up since Monday. I thought this was supposed to be for advice not unpleasantness.

Just trying to get to the detail, and assess your attitude to money (ie what's a couple of £K when you're in so deep, or maybe you'd genuinely forgotten some?...after all, you described your debt as "£28,000 to be precise" in your other thread).

I have to pay out quite a lot of money for which I don't need t explain but I do work for a living and pay my debts off on time and always have.

Irrelevant and unnecessary (which will be the bank's opinion too).

Cat_girl_2

I don't think the fact that everything gets paid on time and overpaid is irrelevant to banks and lending institutions is it? I thought they considered the amount of debt people have had and paid off historically over the past six years was an important part of the credit report?

Pixie5740

Lenders are looking for are patterns and how you handle debt. Certainly making payments on time, paying more than just the minimum, and not being right up at your credit limits looks better than someone who frequently pays late or as defaults.

Lenders also look at the amount of available credit (unused CC limits) and debt to income ratios.

I would say that the likelihood of you getting a joint loan of £8k would be slim to none because of your other borrowings. You are financially linked with your husband but whether or not that prevents him from getting an £8k loan solely in his name I cannot say. Perhaps he could try the MSE Loan Eligibility Calculator before applying.

David301

I think from your information you would hinder the application but then there are other aspects that we don't know.

Equity in your property?
Does he have any current debt?
The purpose of the loan?
Your existing monthly outgoings in relation to income?
The level of interest that you have on existing debt? (an indication of your risk)

The list goes on

Cat_girl_2

We have decided not to go ahead as we have six months now to get some money together, it is for a second car as one of us got a new job. We have £30k equity in the property.
My debts are all interest free apart from my loan which is 4.5%. We have decided to pay cash which we can get together.
Thanks for the answers everyone. If anything this has focused me on paying this debt off ASAP