Transferring overseas loan - UK options?

jen_lync

Dear all – I am writing for some of your hopefully very wise advice in figuring out the best way (if at all) to transfer loans from a Canadian bank over to the UK.

I’ve been in London for 3.5 years and working full-time at the same job now for just over 3 years. It's a good job with a good salary, although I am still effectively living month-to-month because, you know, London. I currently spend 550 each month to pay off these loans with a Canadian bank (I make transfers each month after payday). The loans total about $48,000 Canadian (or about £24k GBP).

My question is about how to move my Canadian loans over to a UK bank.

My rationale for doing this is, first off, to remove the £8 a month my Canadian bank charges me to receive the money (I don't pay any fees for the transfer itself).

Secondly, the 24k amount is broken into 3 different loans, 2 of which are for my 2 degrees (student loans). The other third is consolidation from previous credit card debt and a car loan. On this third, I am ONLY paying interest, not any of the principal, and this worries me. Because I no longer make money in Canada I cannot renegotiate these with my bank.

Third, given the current incredibly positive exchange rate between Canada and the UK, I basically am able to pay off these loans for half of what they are worth in Canada.

So, does anyone have any advice on my best bet for getting a loan at a fairly low interest rate here in the UK to pay these off? I would rather not make applications with too many banks in order to keep my credit where it is (good). I have also heard that my chances may be low if I say this is to pay off overseas debt, maybe better to say I am using it towards a wedding, etc? (although I don’t really like that option – too honest for my own good). Also, wonder if trying to get two 12k loans rather than one 24k loan is a better option.

I realise this is a long message - any guidance or advice is much appreciated, thanks!

JJG

jen_lync wrote: »

Dear all – I am writing for some of your hopefully very wise advice in figuring out the best way (if at all) to transfer loans from a Canadian bank over to the UK.

I’ve been in London for 3.5 years and working full-time at the same job now for just over 3 years. It's a good job with a good salary, although I am still effectively living month-to-month because, you know, London. I currently spend 550 each month to pay off these loans with a Canadian bank (I make transfers each month after payday). The loans total about $48,000 Canadian (or about £24k GBP).

My question is about how to move my Canadian loans over to a UK bank.

My rationale for doing this is, first off, to remove the £8 a month my Canadian bank charges me to receive the money (I don't pay any fees for the transfer itself).

Secondly, the 24k amount is broken into 3 different loans, 2 of which are for my 2 degrees (student loans). The other third is consolidation from previous credit card debt and a car loan. On this third, I am ONLY paying interest, not any of the principal, and this worries me. Because I no longer make money in Canada I cannot renegotiate these with my bank.

Third, given the current incredibly positive exchange rate between Canada and the UK, I basically am able to pay off these loans for half of what they are worth in Canada.

So, does anyone have any advice on my best bet for getting a loan at a fairly low interest rate here in the UK to pay these off? I would rather not make applications with too many banks in order to keep my credit where it is (good). I have also heard that my chances may be low if I say this is to pay off overseas debt, maybe better to say I am using it towards a wedding, etc? (although I don’t really like that option – too honest for my own good). Also, wonder if trying to get two 12k loans rather than one 24k loan is a better option.

I realise this is a long message - any guidance or advice is much appreciated, thanks!

A good place to start would be to provide your current salary.

jen_lync

Thanks. My salary is around 40k.

CLAPTON

the only feasible way is to take out a new loan in the UK and use the money to pay back the canadian loans

jen_lync

Yes, thank you, I know. I would like to take out a loan in the UK to pay it off.

I guess my main question is how likely am I - now that I have been here and working for 3 straight years with a good income - to be approved for a loan of 24k? Are banks in the habit of approving for that amount or should I shoot for a lower amount?

DCFC79

jen_lync wrote: »

Yes, thank you, I know. I would like to take out a loan in the UK to pay it off.

I guess my main question is how likely am I - now that I have been here and working for 3 straight years with a good income - to be approved for a loan of 24k? Are banks in the habit of approving for that amount or should I shoot for a lower amount?

Whether they will lend you 24k on a salary of 40k is the unknown but you might be better off asking for less.

Your own bank is the best place to start, Nationwide have a soft loan search option.

bengalknights

You could also try mse who also do a soft credit search

musafir05

I had a friend who had a £30k bank loan from Barclay's but moved permanently to Australia. He had cancelled all the direct debit, therefore didn't pay a single. Its been 6 years in total and the loan is now statute barred.

Derboy

In my experience £25k seems to be the threshold that most of the big high street banks are happy to provide unsecured loans up to without too much trouble.

You are correct that lenders do not view debt consolidation loans favourably. My advice is to go apply for the full amount over a manageable term (get quotes) such as 3 to 5 years and when you fill out the form online, say it's for a car. An unsecured loan isn't secured to an asset, so if it's granted it's not like they'll require proof of any associated transaction.

Option 2 is just to stop paying and don't return to Canada until the debt is statute barred

http://credit-collections.ca/statute-of-limitations-on-canada-debts/

... but that then raises a moral argument rather than a financial one :A