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How do I improve that home?

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qvorum
qvorum Posts: 3 Newbie
Hey guys,

If possible, I need a guesstimate of my chances to get approved for a home improvement loan.

Salary: £45K
Credit score: 972
Debt: £10K (government student loan being paid into eternity); £10K outstanding on a loan with Metro Bank (will be paid off within 2 years)

I am looking for a home improvement loan. I would like to get £30K. I have a country-side house that is in bad need of repair. The property is abroad. Would that play a role in their decision? I am not a property owner in the UK.

I would like to hear about my chances of getting approved. How much would banks normally lend for home improvement purposes? From a bank's perspective, am I in too much debt already (not even sure if the student loan counts - my monthly payments are only £60)?

I am not worried about the monthly payments on £30K - currently I am easily saving £600 per month. And my salary will be £50K within a few months. I am very disciplined with money.

Thanks :)
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Comments

  • forgotmyname
    forgotmyname Posts: 32,922 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    qvorum wrote: »
    Hey guys,

    If possible, I need a guesstimate of my chances to get approved for a home improvement loan.

    Salary: £45K
    Credit score: 972 Lenders don't see this.. Useless number.
    Debt: £10K (government student loan being paid into eternity); £10K outstanding on a loan with Metro Bank (will be paid off within 2 years)

    I am looking for a home improvement loan. I would like to get £30K. I have a country-side house that is in bad need of repair. The property is abroad. Would that play a role in their decision? I am not a property owner in the UK.

    I would like to hear about my chances of getting approved. How much would banks normally lend for home improvement purposes? From a bank's perspective, am I in too much debt already (not even sure if the student loan counts - my monthly payments are only £60)?

    I am not worried about the monthly payments on £30K - currently I am easily saving £600 per month. And my salary will be £50K within a few months. I am very disciplined with money.

    Thanks :)

    20k debt on a 45k salary?

    Have you bought the property? what is it worth?

    How much do you have saved towards the repairs?
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  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    You could apply to whichever institution has given you a rating of 972.....ha ha only joking, they don't lend money.

    https://www.moneysavingexpert.com/loans/credit-rating-credit-score

    £30k is a lot to borrow on an income of £45k for someone who already owes £10k to Metro Bank and presumably either lives with family or rents. You could try using the MSE loan eligibility calculator.

    https://www.moneysavingexpert.com/eligibility/loans-calculator/
  • Herzlos
    Herzlos Posts: 15,879 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    You might struggle with a £30k loan on a £45k salary anyway.

    If you're putting £600/month away into savings, can you improve the house piecemeal? What is it your trying to do?
  • Sncjw
    Sncjw Posts: 3,562 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    A 30k loan whe. You have 10k loan already so that!!!8217;s 40k.

    Would you lend that amount of money to someone who is only earning 5k over the loan amount.

    No chance. If your saving £600 a month why not do bits at a time. Or why not pay more money toward the metro debt to clear it off quicker
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  • DCFC79
    DCFC79 Posts: 40,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Cant see you getting a loan @ £30k when you already have £10k, consider doing it in stages eg most important first and work through the list.
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    ''I am very disciplined with money'' says the OP but has a £10k loan and wants another for £30k for a property abroad but is able to save £600 per month - pull the other one please.
  • enthusiasticsaver
    enthusiasticsaver Posts: 16,056 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    You wont get a secured loan on a property abroad and you will struggle to get £30k on unsecured as you already have £10k and it is unlikely lenders will go up that high without security anyway.

    As others have said maybe reduce the amount you need and do it in stages or save up.
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  • qvorum
    qvorum Posts: 3 Newbie
    Hey guys,

    Thanks for the feedback. That chance calculator was useful. So is knowing that the 972 is a rather useless metric. Sneaky credit agencies!

    I will settle for less than 30K, if I have to. Truth be told, Experian gives my chances at 80% for 30K. The MSE calculator gives them at 90% (for 25K). Don't know how reliable those are.

    I have to put down "tenant" in the application, because that is what I am in the UK. But if I do that, from the lender's perspective I own no property. For them this begs the question - why do I need a home improvement loan. A slight logical glitch in the system there. Any ideas how to overcome that?
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    qvorum wrote: »
    Hey guys,

    Thanks for the feedback. That chance calculator was useful. So is knowing that the 972 is a rather useless metric. Sneaky credit agencies!

    I will settle for less than 30K, if I have to. Truth be told, Experian gives my chances at 80% for 30K. The MSE calculator gives them at 90% (for 25K). Don't know how reliable those are.

    I have to put down "tenant" in the application, because that is what I am in the UK. But if I do that, from the lender's perspective I own no property. For them this begs the question - why do I need a home improvement loan. A slight logical glitch in the system there. Any ideas how to overcome that?

    You lie - you then go to jail for fraud - your choice.
  • ViolaLass
    ViolaLass Posts: 5,764 Forumite
    You lie - you then go to jail for fraud - your choice.

    That's a bit unnecessary. It was a valid question.
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