Question on AA loan

maxthepolarbear

I'm hoping to borrow a loan to buy a parking space. The parking space is going to be joint to my existing contract to my flat which I already own. Most lenders say they will not lend money for the purchase of a property. I'm wondering if this count as a purchase of a property?

My specific question is that AA doesn't seem to have that restriction. Does that mean I could use the loan to buy the parking space (I'll also put down a deposit from my saving). If so should I put this under "home improvement" for the loan purpose? Arguably it can be counted as home improvement as I already have a flat (similar to doing up a garage if you have a house)?

Thanks.

maxthepolarbear

On AA website it says "
How can the loan be used?

A personal loan provides you with a lump sum which can be used to spread the cost of more expensive items, such as a home improvements or a new car, over a pre-agreed term. It is not suitable to fund day-to-day expenditure or for use as a deposit for other credit arrangements such as a deposit for a house."

Shakin_Steve

You could, maybe, stretch this to the point of adding to the value of your property. As such, maybe a small mortgage on the flat?

maxthepolarbear

Will my solicitor care the condition that is attached to the loan?

markie49

I want to consolidate some debts, have a good credit score, have one informal payment plan on file, Clear Score recommended to me that I had an 80% chance of a loan with M&S. I applied to M&S who did a soft search and told me I was eligible so I went ahead with application and was refused- how is this? Clear Score are now telling me that I have a 70% chance of getting a loan with the AA- where am I going wrong? I cant contact Clear Score online either to discuss

[Deleted User]

80% chance of acceptance means 20% chance of rejection. You were in the 20%.

What do your credit files show?

DCFC79

markie49 wrote: »

I want to consolidate some debts, have a good credit score, have one informal payment plan on file, Clear Score recommended to me that I had an 80% chance of a loan with M&S. I applied to M&S who did a soft search and told me I was eligible so I went ahead with application and was refused- how is this? Clear Score are now telling me that I have a 70% chance of getting a loan with the AA- where am I going wrong? I cant contact Clear Score online either to discuss

You should really start your own thread and not hijack someone elses thread.

Caz3121

Given that your report will show your arrangement to pay, not paying the contractual loan amount due to not being affordable, you will likely struggle getting further borrowing (as they will consider this additional to your current debts as there is no guarantee you will use the loan to pay these off)

Consolidation rarely works. Have a look at the DebtFree board for some friendly help on addressing your debt rather than focussing on moving it around

Time will heal your history. Do you know how the loan will report you once the arrangement stops? have you built up arrears or just added additional time onto the term?

[Deleted User]

I had a feeling we'd been round this particular topic before - this is why you're not going to get a consolidation loan -

https://forums.moneysavingexpert.com/discussion/comment/72384105#Comment_72384105

markie49

Thank you zx81 sorry for posting again- I am new to all this stuff and find it hard to find my original posts- I'm just looking advice

[Deleted User]

Just click on your own user name in any of your posts, and you can find your previous posts from there (and other information).