Debt to income ratios - Tesco

Pixie5740

In that case you might just have to suck it and see.

If it turns out to be a no or with a hideous APR then what about a £14,999 loan each (better APR) and then £5,002 on a 0% Money Transfer card?

andys15

If you get the loan and then extend. You still will struggle to then pay of the loan with the increased equity in the house. We took out loans to renovate all downstairs( garage conversion, kitchen)Then further loans to extend. We did it the loan way as didn't think we had equity. Anyhow, we then had a mortgage valuation. We had £175k equity. We tried to put the loans on the mortgage, but it was seen as debt consolation so were unable to offer it to us. Affordability was no problem, the mortgage is less than 2 times our combined income, but there were harsher rules for debt consolation. We provided receipts to show all debt was for the work done to the house, but they wouldn't budge. Ultimately worked ok. I have put all the loans on credit cards now, so apart from the fees it's interest free.

tonyh66

perdy1978 wrote: »

We have high borrowings as I have a business loan to input capital into my partnership however that money still sits in my capital account and in theory can be drawn back to me at any time. All of it, including the new 35k however is still less than 3 times our annual income, it is just the monthly ratio that is not as good, although easily affordable. We cannot re-mortgage as we won't have enough equity in the house until we extend - catch 22!! Once we have extended we will re-mortgage to pay off the loan but until we can get a loan to extend we are stuck! Tesco looks like the best option but like I say they won't tell me what ratio they use.

I don't think you can get unsecured loans at multiples of your annual income, generally they are less than 1x annual income, usually its around 0.5 or 50% of your income. But I stand to be corrected.

20aday

Sainsbury's Bank do offer a 'soft search' tool on their loans OP:

http://www.sainsburysbank.co.uk/borrowing/bor_borrowing_zone.shtml#tab-will-i-be-approved

Whilst it would be subject to a hard search (and other assessments) it might give you an idea if you'd be accepted (or not) for a high amount of borrowing.

Pixie5740

tonyh66 wrote: »

I don't think you can get unsecured loans at multiples of your annual income, generally they are less than 1x annual income, usually its around 0.5 or 50% of your income. But I stand to be corrected.

You're right. Unsecured debt isn't based on multiples of income it's usually a fraction of income, around 70% is the maximum I think.