Loan before First Pay Cheque

swoophoop

Hi,

I'm starting a new job September first with a salary of £26k, rising to £28k after 3 month probation. I need to relocate and I was looking to secure a graduate loan to cover the costs, (deposit, first two months rent, agency fees). I also have some existing debt on credit cards ~£3k, so was looking to take a £6k loan to consolidate the existing debt and cover the relocation fees. When I looked to apply for my bank (HSBC) I was unable to set my employment on my profile as I couldn't set a future date.

I'm worried the bank will look at my current income and decide I can't afford the loan, whereas once I start my job I will be able to afford it comfortably. Various budget calculators work out I will have £200-300 spare each month, including repayments.

All advice is appreciated!

Gaz83

No-one reputable is going to lend you any money while you don't have an income to repay it.

swoophoop

Gaz83 wrote: »

No-one reputable is going to lend you any money while you don't have an income to repay it.

HSBC graduate loans offer a 3 month repayment holiday, so no repayments would be necessary until I've started the new job. My current income is £8k/pa and I can manage the first months payment on this if absolutely necessary. The contracts for the new job are all signed and sealed, it's just waiting for the start date.

Gaz83

swoophoop wrote: »

HSBC graduate loans offer a 3 month repayment holiday, so no repayments would be necessary until I've started the new job. My current income is £8k/pa and I can manage the first months payment on this if absolutely necessary. The contracts for the new job are all signed and sealed, it's just waiting for the start date.

Sounds like you've answered your own question, then. Why don't you apply?

Job offers can be withdrawn, even after contracts are signed.

swoophoop

I suppose I don't want to be refused and have it affect my credit score. Whilst I know my circumstances, the bank doesn't see the same things from my account re the new job. Is it likely to make a difference applying in branch and being able to explain the situation rather than online?

Gaz83

You don't have a credit score.

I wouldn't have imagined it making much of a difference applying in person or online. You're still applying for a loan without an income to repay it.

[Deleted User]

You'd have to be barking, what if the job doesn't work out? that probation period means something!


I can't blame you, I may be trailer trash (I was expecting more then a week in my first pay packet having worked 3 weeks very recently but no so it goes to show it is another 4 weeks before I'll even know what full pay looks like) so that is the problem you could be faced with, especially if you have an employer used to dealing with kids. (eg. don't have rent, priority bills, just bills to pay) the place of employment just won't worry about this I can confidently assure you.

swoophoop

Deleted%20User wrote: »

You'd have to be barking, what if the job doesn't work out? that probation period means something!

Yeah I appreciate the risk, but I'm damned if I do, damned if I don't. I need to move to start the job and need to finance this. If I can't get the money, I can't get the job! Here's to living on sofa's for the next few months by the looks of things.

pmd123

swoophoop wrote: »

I was looking to secure a graduate loan to cover the costs, (deposit, first two months rent, agency fees).

Why don't you look to get a house share or lodge for the first few months to ensure everything goes ok, and build up some funds for a deposit and rent? Nothing says you need to have your own place straight up, and lodging for 2 or 3 months should be ample time for you to save up.

BrassicWoman

lodging is the sensible option!

10pence

HSBC will insist on seeing at least 3 months salary before even considering the loan - at least that was the rules when I use to work there.