Need advice on getting ready for a 25K loan

Sanjjj1189

Hi everyone, just wondering if I should reduce or cancel any of these to better my chances of obtaining a 25K loan?...

FYI I earn £5003 a month before tax, £3770 after tax.

I have no debt at all and the following lines of credit:
1 x Barclays account with available £210 overdraft
1 x Halifax account with available £800 overdraft
1 x Nationwide account with available £3000 overdraft
1 x Nationwide Credit Card with an £8000 limit

I am thinking of lowering my £8000 CC limit to £3000 but want your views on it.

I do realise that there are a number of other factors involved, but want to make sure my available credit wont hurt my application.

EDIT: Also, with the general rule of thumb being 50% of salary in credit is acceptable by lenders, is that 50% of your Gross salary or Net salary?

Any advice will be appreciated.

andyfromotley

Hi Sanj,

sadly its impossible to say. Nobody knows if lowering your available credit will assist. Common sense would tell you that it would, so if you have no plans on using them i'd lower or get rid of the higher ones, but its all just a guessing game!

Paully232000

Have you tried to get a £25K loan recently, and did they give you a reason for decline.

purdyoaten

Sanjjj1189 wrote: »

FYI I earn £5003 a month before tax, £3770 after tax.


.

That is a high net salary according to my calculations!

Sanjjj1189

andyfromotley wrote: »

Hi Sanj,

sadly its impossible to say. Nobody knows if lowering your available credit will assist. Common sense would tell you that it would, so if you have no plans on using them i'd lower or get rid of the higher ones, but its all just a guessing game!

andyfrommotley - Thanks mate, yeah in that case i'll cut it down, just don't want to cut them down too much to the point it looks to lenders like no-one trusts me.

Paully232000 wrote: »

Have you tried to get a £25K loan recently, and did they give you a reason for decline.

Paully232000 - Yes, and it was because of affordability, I think because I had my CC maxed out and overdraft of £3000 max but have paid that off as soon as I got declined.

purdyoaten wrote: »

That is a high net salary according to my calculations!

purdyoaten - im not sure what your point is (maybe saying im lying?), but lets take my previous months payslip, with some overtime I managed to get paid £5722.51, tax & NI at £1792.46 = Net £3930.05, so it is not high at all

tell_it_how_it_is

If you can wait, save up hard for a while, and apply for less, say 15?

bris

So with no debt and making that kind of money why would you need a loan?

Sanjjj1189

tell_it_how_it_is wrote: »

If you can wait, save up hard for a while, and apply for less, say 15?

I might just do that, think its the better option. Just wondering what limit I should reduce my CC to.

bris wrote: »

So with no debt and making that kind of money why would you need a loan?

Because I want to make a building in the back garden during summer, don't want to save up and wait as it will be winter by then.

im-lost

Sanjjj1189 wrote: »

I might just do that, think its the better option. Just wondering what limit I should reduce my CC to.


Because I want to make a building in the back garden during summer, don't want to save up and wait as it will be winter by then.

so add it to the mortgage, simple answer, no?

because nobody is going to give you 25k of unsecured lending

Gaz83

Sanjjj1189 wrote: »

Because I want to make a building in the back garden during summer, don't want to save up and wait as it will be winter by then.

I think the whole point is that with a salary of nearly £4,000 per month after tax, any lender is going to question why you don't appear to have any savings, and thus wonder about affordability.

Sanjjj1189

im-lost wrote: »

so add it to the mortgage, simple answer, no?

because nobody is going to give you 25k of unsecured lending

I am living with my parents sorry I didn't make that clear.. and why would they not? I can easily afford the repayments I just want to make sure my CC limit doesn't affect my application.

Gaz83 wrote: »

I think the whole point is that with a salary of nearly £4,000 per month after tax, any lender is going to question why you don't appear to have any savings, and thus wonder about affordability.

I see your point, although I have literally just cleared all my debt last month so I can now start saving if the loan doesn't go through.. which is why im wondering what level I should lower my CC limit to.