Loan for kitchen purchase but with outstanding default

Akk223

Hi

I am looking for help with either a loan or an interest-free purchase for a new kitchen. The background is that I have been renovating my house which I purchased last year. Literally the place been gutted with everything put in as new. The project is almost complete and has been funded without a loan so far. As with many project works the money spent doing the works has exceeded my budget which has meant that I have a shortfall. According to my revised calculation I should have everything including carpets and flooring in apart from the kitchen cupboards and appliances for which I am placing an expected cost of £5k.

Normally you would say go to the bank and get a loan. This is where I have a problem in that I have poor credit score due an unsatisfied default entered into my account in June 2011 which is due to be statue-barred towards the end of this year. The amount due is £900 however the agents have not chased and therefore I have not paid.

Since then my bank account, mobile phone, and anything else including mortgage repayments are fine. So there is no issue elsewhere.

In January this year I approached my bank, Natwest for a loan believing that as I bank with them that they would lend the money however they declined. I was shocked as I have two accounts with them a savings account and a current account. The savings account had substantial amounts of money which I kept separate for my renovation works and my current account which was overdrawn. My salary was always paid into my current account and my salary always bought my current account into positive equity.

I am due to exit my fixed term of my mortgage next June (after my default has disappeared) and shop for a better mortgage and therefore do not want a trail on my credit file which shows a rejection for a loan.

I have spoken to my lender about getting a mortgage advance due to increasing the value of the property due to the works done but they said that they cannot lend until the kitchen is in. So I am caught between two places.

To top this off, I am due s bonus from my job later in the year but need the kitchen before the bonus. In addition I do not have a credit card and have not had one for a very long time.

Therefore any help would be good to the following:

1. Are there any lenders who will lend this amount? If so who would be the best to approach

2. What are my chances of buying a kitchen on an interest - free loan through Homebase, Wren, etc due to my outstanding default

3. Any other suggestions of how I can obtain the funds to finance this kitchen purchase?

Thanks for your help in advance.



3.

redpete

You've not bothered paying £900 that you owe and are 'shocked' that a bank won't offer you a loan?

[Deleted User]

Akk223 wrote: »

The amount due is £900 however the agents have not chased and therefore I have not paid.

That's not really the attitude that lenders are looking for.

Dobbibill

Try and look at your lending request as paper based.......ie - no emotion attached. Imagine you picked up this piece of paper.......would you lend them any money?

You borrowed money - a relatively small amount and didn't bother to pay it back.

You kept your money in a savings account to earn interest on it and didn't budget monthly without using the banks money ie the overdraft. You bring the account back into credit each month with your salary but continue to regularly use the overdraft.

You don't use a credit card so the only evidence of things being paid back are for things that benefit you, you have to pay. ie mortgage, mobile phone

When you sit back and look at it like that, it doesn't seem to be so shocking.

I would save everything you can, including the amount you would have earmarked for loan repayments, for a few months then buy a cheaper kitchen, you will be able to pick up something for alot less that £5k

Thrugelmir

Akk223 wrote: »

3. Any other suggestions of how I can obtain the funds to finance this kitchen purchase?

Settle what you already owe. Then you may find doors opening.

Akk223

Thank you for your messages. I comment as follows

1. In respect to the kitchen, the most value for money kitchen is £5k based on the design and size if the room which includes appliances and worktop. This includes fitting the kitchen. I have shopped around and this is the best deal I can find.

2. It is not about paying the £900 but only found out about it last year. I do not recall ever being notified about this and thought this was paid off. After doing my investigation I found that the debt was sold to another company who have not chased me or contacted me.

3. Even if the debt was paid off, what would my chances of obtaining a loan be?

4. The reason why I placed my money into savings account was for specifically for the purpose of the renovation work which has almost been £70k. I did not want to keep this in my current account as it was assigned for a specific purpose so that my day to day spend would not be affected. I would transfer money from my salary to my savings account on a regular basis. Both the savings and the current account was with the same lender.

andyfromotley

You are worrying wayyyyyyy too much about having a loan application on your credit history. Applications do not show as an accept fail, merely as a check by the company involved. The fact that no subsequent acount shows is neither here nor there, There are many reasons why they do not progress to a full account, the obvious one being perhaps you changed your mind. Do you think getting a mortgage is going to hang on one application showing on your credit record? I dont.

Gret yourself on the eligibility checker and see what comes up. No one can see this other than you.

Gaz83

Akk223 wrote: »

2. It is not about paying the £900 but only found out about it last year. I do not recall ever being notified about this and thought this was paid off. After doing my investigation I found that the debt was sold to another company who have not chased me or contacted me.

3. Even if the debt was paid off, what would my chances of obtaining a loan be?

Would you rather loan money to someone who pays their debts or someone who doesn't?

You can make excuses all you want, but most lenders want to loan money to people who are sensible with their finances. Forgetting about a £900 loan and then not doing anything about it when you do find out isn't going to look good to the eyes of most banks / building societies.