loan advice

ERICS_MUM

OP, personally Id go with the loan as per your details.

I don't know about your bank but mine has an on-line loan repayment estimator - you put in the amount you want to borrow and the repayment term and it gives you an approx monthly repayment amount. Obviously it will vary according to the loan rate but it will give you a good idea.

Another thing I would think about is to keep some of your savings for emergencies or building work contingency fund and borrow slightly more. If you want to keep the loan as small as poss, use some of your monthly disposable income to build up your savings again. Personally I would panic if I didn't have at least a couple of thousand pounds savings 'just in case' !

BenH19

Hi, I have just applied for a loan of £12,000 over 5 years and have been turned down. It wasn't a payday loan, it was a reputable company.
My salary is £19000, I live at home with parents, have little outgoings, have had a phone contract for 10 years, have a near perfect credit history with Experian, have no previous debt or outstanding loans. I have appealed the decision & have again been rejected. I sent in copies of bank statements - I had been on holiday a few times during that period & so drawn out money to pay for it. I explained this when sending in my statements. I am now going to appeal for a last time, but does anyone have any advice? Would it be best to wait to send in another statement (without drawing any money out for hols etc) to prove that I can afford the loan. Also does anyone have any advice on how much to apply for in my circumstances? Ie did I apply for too much? Thanks

[Deleted User]

£12k is too much for most lenders to feel comfortable on a £19k income.

How much are you saving each month? How long would it take you to save up?

jonesMUFCforever

BenH19 wrote: »

Hi, I have just applied for a loan of £12,000 over 5 years and have been turned down. It wasn't a payday loan, it was a reputable company.
My salary is £19000, I live at home with parents, have little outgoings, have had a phone contract for 10 years, have a near perfect credit history with Experian, have no previous debt or outstanding loans. I have appealed the decision & have again been rejected. I sent in copies of bank statements - I had been on holiday a few times during that period & so drawn out money to pay for it. I explained this when sending in my statements. I am now going to appeal for a last time, but does anyone have any advice? Would it be best to wait to send in another statement (without drawing any money out for hols etc) to prove that I can afford the loan. Also does anyone have any advice on how much to apply for in my circumstances? Ie did I apply for too much? Thanks

They have turned you down not once but twice - they will not change their minds.
What do you spend your salary on?
If you live at home with no debts where does it all go?

BenH19

Thanks for the responses. Do you think £7,500 would be attainable? I started my job in May & wasn't on a good wage before that, so I literally paid for everything (holiday, car insurance etc) in a few months & can now put everything else towards savings..but I require the money asap. Any other advice?

Gaz83

BenH19 wrote: »

Thanks for the responses. Do you think £7,500 would be attainable? I started my job in May & wasn't on a good wage before that, so I literally paid for everything (holiday, car insurance etc) in a few months & can now put everything else towards savings..but I require the money asap. Any other advice?

If you make several loan applications in a short period of time, you will come across as desperate, making you less attractive to lenders.

You may need to wait 3-6 months.

ViolaLass

BenH19 wrote: »

Thanks for the responses. Do you think £7,500 would be attainable? I started my job in May & wasn't on a good wage before that, so I literally paid for everything (holiday, car insurance etc) in a few months & can now put everything else towards savings..but I require the money asap. Any other advice?

What do you need the money for?

Do you need it all up front?

How much can whatever-it-is be delayed?

Can you do it for less?

Suarez

BenH19 wrote: »

Hi, I have just applied for a loan of £12,000 over 5 years and have been turned down. It wasn't a payday loan, it was a reputable company.
My salary is £19000, I live at home with parents, have little outgoings, have had a phone contract for 10 years, have a near perfect credit history with Experian, have no previous debt or outstanding loans. I have appealed the decision & have again been rejected. I sent in copies of bank statements - I had been on holiday a few times during that period & so drawn out money to pay for it. I explained this when sending in my statements. I am now going to appeal for a last time, but does anyone have any advice? Would it be best to wait to send in another statement (without drawing any money out for hols etc) to prove that I can afford the loan. Also does anyone have any advice on how much to apply for in my circumstances? Ie did I apply for too much? Thanks

I got a £25k loan with Halifax and my income is £18k. Give them a try.

Mogley

I have used a loan in the past to pay for home improvements. I paid relatively high interest compared to current rates but since moving out of debt camp and into the regular saving camp I came across an article posted on the Monevator pages (used a lot in the savings threads) about "When you borrow money, you’re borrowing from your future self." (I cannot post a link yet)
As you are in a position where you can save money, take a read of this and ask yourself if you really need to purchase for your home improvements now. If the answer is yes then take guidance from others in this thread. If you can wait then your future self may thank you.