Loan for London house deposit

aotter

Hi all,

My first post here at MSE, so sorry if i do anything wrong ha.

I'm due to move to London in about a month and need to pay a deposit that is £1,500 as well as October's rent (£700) and am looking to get a loan.

I've seen a fair few good ones and run a soft check on my eligibility and im 70% likely to get £2,500 over 3 years (£3,000 overall with interest).

My overdraft is currently at -£600 (0% student overdraft), but I'm due to get paid by the end of this month (£1000) but then won't get paid until the end of October for my new job,so need money for the deposit and general living in September and October.

Do you think the £2,500 loan be the best option for me? I was also looking at credit cards, but I need to pay my deposit on a debit card. I'm also 0% eligible for a Money Transfer Card.

I tried to get an additional 0% overdraft through a graduate account, but Santander turned me down (even though my credit score is really good!).

Any help/advice would be greatly appreciated.


Ash

ViolaLass

Ask for a salary advance.

Candyapple

How much will your new salary be in your new job?

£1,500+£700 = £2,200 - was the additional £300 supposed to be for "general living" for 2 months?

What about moving costs?

Will you need a travelcard to get to work?

What about bills? Mobile? Gas, electric, water etc.?

Food?

Do you have anything saved?

What happens if you applied for a loan and didn't get accepted anywhere - how will you move to London then?

stator

How long have you had your existing job?

Sounds like your only option is a loan or to request relocation expenses from the new employer (which is unlikely unless they're a very nice company).

Get the loan first, from a bank you have a good history with. Then you could consider a 0% purchase card for other incidental expenses related to the move. But you might be turned down because of the recent loan.

aotter

Candyapple wrote: »

How much will your new salary be in your new job?

£1,500+£700 = £2,200 - was the additional £300 supposed to be for "general living" for 2 months?

What about moving costs?

Will you need a travelcard to get to work?

What about bills? Mobile? Gas, electric, water etc.?

Food?

Do you have anything saved?

What happens if you applied for a loan and didn't get accepted anywhere - how will you move to London then?

Salary of the new job is £1,300 a month, plus additional pay at £200 every other month.

I have my £1,000 overdraft as well. So luckily will have £1,300 over the 2 months which should be more than enough for general things like food.

I won't have to travel much during the first month, so torn between PAYG and a monthly travel card. Probably the travel card as I get 1/3 off as I'll still be a student. Bills are all to pay the. End of October. Unfortunately no, no savings :-(

Worst case scenario, I'll ask my mum but I don't like to borrow from family.

aotter

stator wrote: »

How long have you had your existing job?

Sounds like your only option is a loan or to request relocation expenses from the new employer (which is unlikely unless they're a very nice company).

Get the loan first, from a bank you have a good history with. Then you could consider a 0% purchase card for other incidental expenses related to the move. But you might be turned down because of the recent loan.

Current job is only a short term summer job that I've been in since June. New job unfortunately won't offer relocation as it is a university (will be working in the university).

I was thinking of a 0% card just for the initial things I need to buy in the first months such as food etc.

Luckily just got a phone call from Santander as they are appealing the rejection for my graduate account. So hopefully can get that as its up to £2,000 overdraft for 3 years. Or even the postgraduate account.

BrassicWoman

can't you just rent a room for a few weeks when you move? That won't need a huge deposit and will let you save.

dresdendave

I always regard borrowing money as a last resort when all other options have failed.

Have you considered contacting the university or students union to see if any one locally can rent you a spare room or even use of a sofa for the short term? Then once you've had a couple of salary cheques you can look at finding something more permanent. This would also allow to get to know the area, travel situation etc. before committing to a lease on a flat.

19lottie82

aotter wrote: »

Salary of the new job is £1,300 a month, plus additional pay at £200 every other month.

I have my £1,000 overdraft as well. So luckily will have £1,300 over the 2 months which should be more than enough for general things like food.

I won't have to travel much during the first month, so torn between PAYG and a monthly travel card. Probably the travel card as I get 1/3 off as I'll still be a student. Bills are all to pay the. End of October. Unfortunately no, no savings :-(

Worst case scenario, I'll ask my mum but I don't like to borrow from family.

No offence but that's a low wage by London standards...... Are you sure you can afford the move?

HappyMJ

You're going to need to find a landlord that thinks you can afford the rent on your own. Of £1,300 income per month you'll be paying out £750 in rent. What's the council tax bill? How much would gas, electricity and water be? How much is travel going to cost you? How much on groceries and clothing? You've left yourself only £127 per week to cover everything and you've got to set some of that aside to clear your overdraft and loans. That's not really enough.