Neyber Loan

Noobie2011

Hoping someone can give a bit of advice on the potentials benefits and risks of an option we have going forward.

We are currently in the process of buying a new build house on the HTB scheme however even though we have reserved a property and our current house is about to exchange and complete we are delayed in applying for a new mortgage due to me starting a new job 2 weeks back and the Lender(Kensington) wants at least 1 month payslip and a permanent contract(already have this but there is a 3 month probation period which we can still not get a confirmation the probation period is 100% okay with Kensington).

Our main reason for going to Kensington is because we have a few things on our credit file such as:

- previous payday loans although nothing in tbe last 12 months
- a couple of missed payments nearly 12 montbs old now
- 2 arrangements to pay with Vanquis from an agreed settlement figure now over 12 months old
- several credit cards and overdrafts all around the max credit as only ever pay the minimum off so the amount and high utilisation looks like our biggest problem

In terms of affordability we are fine and passing easily and not looking to borrow anywhere near our limit.

However as said before the biggest issue which our broker and others have mentioned is the amount of credit cards and overdrafts and the high utilisation so this is where Neyber comes in. We are easily paying the minimum on the debts no problem but of course the interest is just terrible so through my partners work this company Neyber are offering loans at 3 rates of 4.4%(great), 6.4%(good) and 9.9%(ok) based on the fact they have agreed with the employers they take the payment direct from your gross wage so more security for them.

Now if we were not about to apply for a mortgage in a few weeks we would be looking to do this ASAP as the monthly savings are in the 3 figures roughly depending on what we were paying off, we would get rid of all the credit cards and overdrafts which would eliminate the utilisation being high and we would have just one Loan to pay every month which we have worked out we could do a term of 3 years and then be paid off. This is almost a life line for us to clear all unwanted debt years earlier than expected and save a lot of money in the process.

But as I said the fact we are looking to apply for a mortgage in a few weeks means if we went ahead with this now, even though we could show financialy it is a lot less risk and also gives us more savings a month, we would of course have taken credit out just recently and the worry is will the lenders look more at this rather than overall it is you could argue a responsible and safer position to be in.

I am waiting to hear back from our broker but they have been AWOL for nearly 2 weeks so wondered if anyone could shed any light as my worry is the current quantity and high balances of credit cards and overdrafts juat looks bad and even Kensington will say no.

Appreciate any help