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Loan dilemma - advice needed please!!
Moominmamma
Posts: 669 Forumite
in Loans
Hello
I've been a bit of a MSE lurker for a few months and decided it was about time I took the posting plunge as we could really do with some advice before DH obliterates his shining credit rating!
Here goes: DH recently applied for a loan of £12k over 5 years with A&L, well given our other commitments we simply wouldn't be able to afford the repayments and so it would just exacerbate the situation we're already in, sinking us ever deeper into debt rather than enabling us to slowly dig our way out. Having belatedly realised this, a few days later he applied for £11k over 10 years with Northern Rock.
NR rang and said they would let us have £10k and we agreed to this. A fortnight down the line and no paperwork from NR had arrived so DH rang them to query this this morning and was told that the loan had been declined!!! Bit mystified by this as we were under the impression they'd already approved it and according to Experian Dh's credit rating is very good, anyway they obviously won't enlighten us at all.
In the meantime A&L have offered us the loan we can't afford :rolleyes:. So what I want to know is this:
1) Is there any guarantee (or even likelyhood) that they would be willing to spread the loan over 10 years instead of 5?
If they were willing to do this I think the loan would become secure as as far as I'm aware they only do unsecure ones over 5 years or less. If at all possible we would really prefer a flexible loan as it appears increasingly likely that our circumstances will change (for the better thank goodness!) over the next 6 -12 months, which leads us to my next question
2) Is it worth approaching another lender for a flexible loan (and if so then who?) or will so many applications (particuarly with one being declined) in a short time span have a really detrimental effect on Dh's credit rating?
I have gone from feeling positive and back in control of our finances thinking we'd got the NR loan to stressed and back to square one, so any words of wisdom would be hugely appreciated!
Thanks in advance
Moomin
I've been a bit of a MSE lurker for a few months and decided it was about time I took the posting plunge as we could really do with some advice before DH obliterates his shining credit rating!
Here goes: DH recently applied for a loan of £12k over 5 years with A&L, well given our other commitments we simply wouldn't be able to afford the repayments and so it would just exacerbate the situation we're already in, sinking us ever deeper into debt rather than enabling us to slowly dig our way out. Having belatedly realised this, a few days later he applied for £11k over 10 years with Northern Rock.
NR rang and said they would let us have £10k and we agreed to this. A fortnight down the line and no paperwork from NR had arrived so DH rang them to query this this morning and was told that the loan had been declined!!! Bit mystified by this as we were under the impression they'd already approved it and according to Experian Dh's credit rating is very good, anyway they obviously won't enlighten us at all.
In the meantime A&L have offered us the loan we can't afford :rolleyes:. So what I want to know is this:
1) Is there any guarantee (or even likelyhood) that they would be willing to spread the loan over 10 years instead of 5?
If they were willing to do this I think the loan would become secure as as far as I'm aware they only do unsecure ones over 5 years or less. If at all possible we would really prefer a flexible loan as it appears increasingly likely that our circumstances will change (for the better thank goodness!) over the next 6 -12 months, which leads us to my next question
2) Is it worth approaching another lender for a flexible loan (and if so then who?) or will so many applications (particuarly with one being declined) in a short time span have a really detrimental effect on Dh's credit rating?
I have gone from feeling positive and back in control of our finances thinking we'd got the NR loan to stressed and back to square one, so any words of wisdom would be hugely appreciated!
Thanks in advance
Moomin
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Comments
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Hi Moomin
No practical advise for you I'm afraid. But I would suggest you post this on the debt free wannabee forum - and include an soa.
I'm sure you'll get loads of good advice about your loan and other debts
Take care hunDebt at 2nd LBM (!) Jun 08 £8,435 - hm, let's not go there!!
DFW Nerd - 721 / DFW Long Hauler 4 / DFD - ASAP!!
Sealed pot challenge - member 336 - £200 target
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