Electoral roll and repayment term

Neil17l

Hello,
I bought a property in August and part way through an extension

I am part funding through equity I had from previous sale but also require £35k personal loan to complete the work

I've done the mse loan eligibility and looks favourable, my income is good compared to outgoings. My credit score is good even though from other posts that doesn't seem as important

I have 2 questions

I have applied for electoral roll in August but council said I won't be registered until late December as they only publish at certain times of year.

They have provided a letter to say my application has been accepted but won't be done until December. Experian have added a notice of correction to my file about this

Is this a big red flag? Or will lenders actually consider the correction? My worry is its computer based and won't be considered

Second question is on repayment term, I would like to do over 7 years as improves affordability. Does the term have any bearing on decision to approve? I.e. Are they more or less likely to approve longer term or it has no consequence?

For info I am planning to apply with Tesco loan

Thanks in advance, Neil

foxy-stoat

Only the tesco computer can anwser your questions, apply and let us know how you get on. If you get a decline then wait until for 30-60 days and apply again.

Good luck

Aquamania

Neil17l wrote: »

Hello,
I bought a property in August and part way through an extension

I am part funding through equity I had from previous sale but also require £35k personal loan to complete the work

I've done the mse loan eligibility and looks favourable, my income is good compared to outgoings. My credit score is good even though from other posts that doesn't seem as important

I have 2 questions

I have applied for electoral roll in August but council said I won't be registered until late December as they only publish at certain times of year.

They have provided a letter to say my application has been accepted but won't be done until December. Experian have added a notice of correction to my file about this

Is this a big red flag? Or will lenders actually consider the correction? My worry is its computer based and won't be considered

Second question is on repayment term, I would like to do over 7 years as improves affordability. Does the term have any bearing on decision to approve? I.e. Are they more or less likely to approve longer term or it has no consequence?

For info I am planning to apply with Tesco loan

Thanks in advance, Neil

Presumably this is where you live and have now registered on the electoral role?

If so, have you considered a mortgage? It'll be obvious to lender where you currently live, and as long as you were on electroral role at previous declared address(es) then it shouldn't be too much of an issue. See a mortgage broker and explain the issues from the outset.

Probably will work out cheaper than a personal loan

Couple of issues to consider if you follow this route (but the mortgage specialist can clarify further)
(1) Minimum mortgage amount may be £50k rather than the £35 you say you seek.
This may not be a bad thing anyway, as these type of projects often over-runm the budget.
(2) Minimum term may be 10 years, but you are already saying you want 7 years to help affordability, and if the £50k really is the minimum they will lend, then the extra years on the term will allow for the affordability of the extra loan.

Actually, go for whatever term you want with the mortgage, even 25 years. Most deals will give you a really good rate for say 2-5 years with the remainder at SVR (which will probably still be chaeper than any loan)
Once the initial promotional period is over where overpayments may typically be restricted to 10% of capital advanced, then you can usually repay the remainder as quickly as you want (ideal if it turns out you do manage to keep to budget).

Again, discuss this plan with a mortgage boker and I'm sure something suitable will be suggested.

[Deleted User]

I can't think of anyone who would advance a 35k personal loan, the best I've seen is 25k

Neil17l

Hi,
It is the house I live in and my registration for electoral roll has been accepted but not published yet... awkward. This is what I got from local council

"Thank you for your email. Your application was successful and you are due to be added to the electoral register when we publish it on 1st December. We are unfortunately governed by statutory updates and therefore cannot push it through any sooner."

I was registered at previous address so hopefully ok

For info Tesco do 35k, sainsburys do 40k personal loans

Not sure the mortgage would work but I'll check, I'm already at 90% LTV, don't think I would get more until the work is complete

It's a bit of lottery making the application knowing that if it fails you need to wait another few months

Thanks for the replies

SeanG79

Your chances of getting 2 £17.5k loans approved are higher than getting a £35k loan approved.

Were you on the electoral roll prior to moving to your new property? If so, it will be less important that you are visible at your new property as banks/lenders understand it can take a few months for voters roll to update and this will unlikely be the reason for your application to be declined. You will hoewver find a condition of the loan will be that you provide a proof of address.

PeacefulWaters

venison wrote: »

I can't think of anyone who would advance a 35k personal loan, the best I've seen is 25k

Quite a few lenders up to £50k now.

Aquamania

Neil17l wrote: »

...

Not sure the mortgage would work but I'll check, I'm already at 90% LTV, don't think I would get more until the work is complete

It's a bit of lottery making the application knowing that if it fails you need to wait another few months

Thanks for the replies

That does make things slighty more tricky, but I don't think you should write off the possibility just yet.

The 90% LTV you speak of is presumably based on the value of the property before the expensive extention you are adding, not to mention one would hope that the value of the property after the extention is completed will increase the value of the property by more than the extention is going to cost you.

The loan may be released in stage payments commensurate with the build.

Again, an experienced mortgage broker should be able to advise you more. Furthermore, mortgage brokers usually know who to approach to (almost) ensure your application will be a successful; if they think your chances are slim/non-existent they will tell you and probably not agree to make the application.

Neil17l

Thanks, I'll talk to broker
It will definitely add value, more or less equivalent to the cost.. not more. But it's a family home for the foreseeable future

SeanG, I assumed 2 loans would be worse as 2 different applications at same time and looking desperate?

My own bank do £25k and did suggest 2 applications, that might be better way to go

Can anyone else confirm that 2 applications would not be bad thing?

Thanks!

SeanG79

With the prevalence of comparison sights and more rate savvy customers, it is not unusual for applicants to make 2 or even 3 applications in order to obtain the lowest rate. Obviously if you have numerous searches, it will look desperate.

Lenders cannot see if the loan was approved or declined, only the search, so provided the loans are activated in a short space of time then you shouldnt have an issue, provided credit searches and affordability stacks up.