Need some loan advice, please

StevenB12

Hey everyone

About 2 years ago I got a loan for 7.5K, paying back 247 a month which has 2 years left to run more or less (2020).

As the usual happens things come up and circumstances change, basically in a year I'm going to be going for a mortgage, also need a new car etc. Was looking at a loan for about 18K, luckily my credit score is good so I got some good offers for monthly payments, about 340 a month. My current loan want 6K settlement figure, is it worth getting a bigger loan, paying off my current loan?

Ive spoken to a mortgage advisor and my current loan wasn't impacting on any forthcoming mortgage, but obviously taking on two loans at a time will, hence this is why I don't want to be looking at a car on finance..

Any advice is greatly appreciated, thank you

zippygeorgeandben

How long is the new loan you are looking at spread over?

bris

Your figures don't make sense, 2 years ago your loan was 7.5k and in that time you have repaid nearly 6k yet you still have 6k left as a settlement figure?

StevenB12

Probably be looking at spreading it over 4 years

StevenB12

High interest rate as it was a first time loan

247 per month over 4 years = 11856

DCFC79

StevenB12 wrote: »

High interest rate as it was a first time loan

247 per month over 4 years = 11856

Or not because a first time loan but a sketchy credit file or maybe dafaults.

Nebulous2

How much do you earn? How much do you expect to borrow for a mortgage? What deposit will you have? What did your adviser say about a bigger loan?

We really can't tell without more information, but for any young person of my acquaintance I'd be advising there is a choice between a car or a house.

StevenB12

No. As I said this was a first time loan , I had no defaults on any payments as I never had any payments previously to make on anything , my credit score would have been average at the time as I had no credit cards no loans etc, this was basically my first financial commitment

StevenB12

I make about 21K per year before tax, plus any overtime, I'll have about 11K to put into a deposit (will also be a joint application with girlfriend ) probably looking at borrowing 120K for the mortgage , the loan I have now had little to no effect on mortgage application based on it being a joint application with both incomes, and I very much agree between car and house but my job involves a lot of travel so it also comes down to needing that car to provide the means of getting the house

Lungboy

I'd have thought an £18K loan on a £21K salary was unlikely, even without another loan on the go.

StevenB12

Already been approved for a few, borrowing 18K over 4 years you're basically borrowing 18K to 84K , pulling out about 1500 per month after tax, take away about 350 per month, would still leave me with more or less basic wage so getting approved for it hasn't been the issue