How do I improve that home?

Candyapple

qvorum wrote: »

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're not a homeowner, the operative word being in the UK.

If you ticked the box for homeowner loan or home improvements, the banks are not stupid. When they search your credit files they will see you have no mortgage on your files, plus the background checks with National Hunter where they will see that all your previous applications you have applied as a 'tenant' and then you run the risk of the bank declining your application and also referring you for a CIFAS marker for lying on your application. That in itself means 6 years of not being able to get any credit and also any existing bank or credit card accounts can also be closed too if they find out.

The simple fact is that most homeowner loans are going to be for considerable sums of money so lenders want to know that if the debtor fails to repay, whilst it is an unsecured loan, they have the option to at least put a charging order on the house to recoup their losses.

If you are only a tenant, it stands to good reason that no tenant would be taking out a loan for thousands to improve a property that isn't theirs and also it makes for riskier lending as the loan is truly unsecured so if you didn't repay, the lender would have a lot less options to recoup any of the debt, let alone its entirety.

ViolaLass

OP, I'm sorry people aren't answering your question and are instead focusing on telling you off for committing fraud that you have not committed and have not stated you intend to commit. Hopefully someone will come along with a more helpful answer.

shortcrust

ViolaLass wrote: »

OP, I'm sorry people aren't answering your question and are instead focusing on telling you off for committing fraud that you have not committed and have not stated you intend to commit. Hopefully someone will come along with a more helpful answer.

Warning someone that a course of action might be seen as fraud is not a bad thing to do.

Edit to add: This forum would be a less useful, a less informative, and a less interesting place if we were limited to answering OPs' questions.

ViolaLass

Sure. But telling them off and not answering their questions is hardly welcoming.

gycraig_2

Honest answer is no one is going to give someone a 30k loan with that salary, especially for a house in a completely different country that they could run away to and never come back

jonesMUFCforever

ViolaLass wrote: »

OP, I'm sorry people aren't answering your question and are instead focusing on telling you off for committing fraud that you have not committed and have not stated you intend to commit. Hopefully someone will come along with a more helpful answer.

Which is what exactly?

ViolaLass

jonesMUFCforever wrote: »

Which is what exactly?

What is the question or what is the answer?

Latter - no idea, else I would have made a suggestion.

Former - "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?"

i.e. how does the OP explain to the bank that they are a tenant here but still want to carry out home improvements? For the lender, that's illogical but in the OP's circumstances, it makes sense.

jonesMUFCforever

ViolaLass wrote: »

What is the question or what is the answer?

Latter - no idea, else I would have made a suggestion.

Former - "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?"

i.e. how does the OP explain to the bank that they are a tenant here but still want to carry out home improvements? For the lender, that's illogical but in the OP's circumstances, it makes sense.

The OP wants to make home improvements on a property abroad.
There is no way they will lend for that purpose.
So you go back to not telling the truth and trying to circumvent the awkward questions.

Nebulous2

ViolaLass wrote: »

i.e. how does the OP explain to the bank that they are a tenant here but still want to carry out home improvements? For the lender, that's illogical but in the OP's circumstances, it makes sense.

Automated systems have their limits. When you hit one of these you need to find a way of getting your question put to a person.

I'd pick a major bank as a lender and apply in branch. They may well fill out the same questionnaire, but should be able to refer to an underwriter.

The advice above about not applying with variations on the answer of whether you are a home owner is essential. It could open a whole world of pain.