Could I get a loan

Sncjw

Hi everyone

I've never had a loan before and considering it to pay for a build on my parents home. Now I was thinking of maybe a 15-20k loan depending on the cost of the build.

I earn 15k before tax and have a credit card which I spend about £500 max a month and pay it off in full. I use this as my general day to to day spending:

I have a next account a use now and then and pay it off in full most I've used is £50.

I have a phone contract at £15 a month.

Would I get this loan or am I thinking stupid

[Deleted User]

The latter, I would think.

ashp_2

I wouldn't say it's not possible but I don't believe you would get a loan for that amount based on your salary.

Sncjw

So looks like il have to save more then

[Deleted User]

You would be lucky to get a loan for 5k, why can't your parents pay for it?

Sncjw

Because the works going to be for me like an annex. I can't afford to move out and I have disability which will make me feel unsafe in a place of my own. This is going to be the best thing for me

mcpitman

Morning,

On 15k p/a your max unsecures loan limit is likely to £7.5k.

Honest question, with that income and your minimal outgoings, how much savings do you have in place?

Suarez

If you have a good credit history then 15-20k is certainly achievable.

CLAPTON

why don't your parent get the loan and you give them the monthly payments?

Ebe_Scrooge

As others have said, based on your salary you're very unlikely to get a loan for the amount you need. Your parents may be in a better position, and as Clapton says, you can pay them back.


It may also be worth them looking at a secured loan / mortgage increase, since the money is to build an extension. Of course, there is a risk associated with a secured loan, in that the property can be repossessed if payments are not maintained. But you'll get a far lower interest rate. Depending on their financial situation ( particularly, can they be sure that they can make the repayments easily ? ) then this may be something worth looking into ? I'll stress again - be absolutely sure that you/they understand the implications should you go down this route and find yourself unable to meet the repayments in the future.

foxy-stoat

Your parents should take out the loan, and you make the repayments in lieu of rent. They will be increasing their property value by building the annex if its done right.