Loan advice - no income proof

findingmyownway

Hi guys, could do with a little advice. I have read lots of threads on this board and Martin's articles but am still not sure of the best option for me.

I need a loan of £9000 to pay back my boyf who lent me money to buy a car and CC debts. I start a new job on 1st October with a salary of £30,000 and so i know i can afford repayments.

So the issues are:

1) How do i get a loan without 3 months pay slips to prove income? (I could wait 3 months if really neccessary buy i really don't want to do that - i've taken enough money off OH while at uni, really want to pay it back asap now i'm working).

2) I will have quite a lot of 'spare' income when i start work and so would like a loan which allows overpayments / early settlement.

Any suggestions of good places to try? My credit rating is fine, never had any problems.

Thanks

N79

Deleted - The spam post has now been removed

N79

CLAPTON

not totally clear

are you currently working and if so what is your income

you say your credit rating is fine... do you mean that your credit records show you have (had) credit and always paid on time?

obviously you are on the electoral roll

findingmyownway

CLAPTON wrote: »

not totally clear

are you currently working and if so what is your income

you say your credit rating is fine... do you mean that your credit records show you have (had) credit and always paid on time?

obviously you are on the electoral roll

Sorry i wasn't very clear.

I am currently a PhD student with a tax free salary of £12,500.

From October 1st i have a 'proper job' paying £30,000

I have a couple of CCs + mobile phone contracts etc and always paid on time.

And yes i am on electoral role.

Thanks :beer:

CLAPTON

Although tax free 12,500 is actually quite a decent income I think that a potential creditor (expecially a computer) wont understand that.

You are probably best to approach your bank and speak to a real person... but dont take out PPI.
However, I think they will not give you a decent interest rate until that nice 30k starting flowing into your account so although it won't hurt to give them a try, unless the interest rate is competitive I would wait for a few months.

findingmyownway

I've spoken to a lady at Sainsburys bank today. They have offered me £9000 at 6.5% over 3 years. Repayments £270odd/month. But she said they wouldnt start til December for some reason.

Does that sound ok?

She said i can make overpayments but they will only decrease the term of the loan (fine by me, not sure what else she thought i would expect them to do?!?!)

Early repayment charge is 56 days interest - how do i work out what that would be? I guess it depends on how long the loan had left to run when i paid it. But am i right in thinking that if there was more than 2 months to go i would still be better of settling early (when it is financially possible)??

Thanks for your help, i am new to this!!

She is sending the paperwork through (i declined the PPI and the £50 charge for 24 hour delivery of funds ). Is there anything else major i should look for before signing??


Thanks again :beer:

regularsaver1

well sometimes people want overpayments to a loan to reduce their monthly payments but this is not the case - this will simply let the loan finish earlier.

I wouldn't of thought you were eligible for ppi anyhow as today 14/9/07 you are not paying national insurance contributions or in the future job

I think sainsbury's always defer their loan payments for 2 months at beginning

Good rate though. if you had waited, rates will probabaly go up

findingmyownway

regularsaver1 wrote: »

well sometimes people want overpayments to a loan to reduce their monthly payments but this is not the case - this will simply let the loan finish earlier.

I think sainsbury's always defer their loan payments for 2 months at beginning

Good rate though. if you had waited, rates will probabaly go up

Ah i see, thanks. My overpayments reducing the term of the loan is fine by me.

I thought the rate was ok too. Just need someone to tell me i've not missed some huge problem with the whole thing!

Off topic i know, but what makes you so sure the rates will go up soon? I have no idea how these things work!

regularsaver1

Only with all the press about the economy at the mo

and this post from MSE with a comment from martin:

http://forums.moneysavingexpert.com/showthread.html?t=551903

What this means for all borrowers: personal loans and new mortgage costs are likely to rise

“There’s a shortage of funds for borrowing, which means prices will go up. Existing loan and mortgage holders on special deals won’t be affected, yet those looking to get a new loan or mortgage rate should act quickly. The quarter of a million people whose fixed rate mortgage ends in the next three months should act immediately; there’s nothing wrong with sorting and agreeing your mortgage now, even if you don’t need it until December.”

CLAPTON

the rate sounds good.

is it fixed or variable?

you need to check that overpayments reduce the overall interest paid rather than simply the period of the loan... a subtle but important point (if they dont then its best to simply save the overpayments until you can afford to settle the loan.

the 'penalty' for early settlement is in accordance with the maximun allowed by CCA regulations.

findingmyownway

CLAPTON wrote: »

the rate sounds good.

is it fixed or variable?

you need to check that overpayments reduce the overall interest paid rather than simply the period of the loan... a subtle but important point (if they dont then its best to simply save the overpayments until you can afford to settle the loan.

the 'penalty' for early settlement is in accordance with the maximun allowed by CCA regulations.

The rate is fixed at 6.5% APR

I'll be reading the small print closely when it arrives sometime next week (i did actually laugh out loud when she offered to send it with a 24 hour courier for a "small" £50 fee)