Advice Please - Looking to take a secured loan

ftsos

Hello, I am hoping I can get some advice here.

I am looking to take a secured loan against my property. I am self employed so getting a loan is difficult even though I have excellent - I mean excellent credit rating. I check my credit rating regularly and make sure its in good standing.

I have less than 3 months of self employed status which makes it even more difficult.

The company is "Together Money", https://togethermoney.com.

Has anyone heard of them, do they have a good reputation?

I feel a bit down because I haven't taken out any loans in over 15 years. I have made some small credit card purchases, but they were always paid off in full.

I don't know much about loaning against a property. From what I understand, they put a note on the property, on the Land Registry against the title deed to say X amount is owed on this property to ABC company, until its paid off. Is this more or less correct?

I know by loaning against the property, I risk my property. However, my options are limited. Please advise or educate me on this if you can.

Thank you.

[Deleted User]

Unfortunately lenders will only ever look at your circumstances and your credit history - never the CRA credit rating, which is a somewhat inaccurate measure, to say the least.

It sounds as if you have a thin file, as well as a recent shift in employment, which lenders are wary of.

You're looking to borrow against your property (rather than loan) - so have you looked at remortgages? Is the property currently mortgaged?

You're also going to need to factor in income and credit history. Have you checked all three of your files to see that all the details are accurate?

ftsos

Hi, I don't know what a CRA is?

The property has no mortgage. It is let out and has been with the same tenant for more than 3 years now - I think. I haven't looked at remortgaging because of my inability prove my income. I can prove the rent. Thats all.

[Deleted User]

CRA = Credit Reference Agency. Check the data on all three (MSE Credit Club, Clearscore, Noddle).

Speak to a broker re your remortgage options. If not now, it may be a future option.

ftsos

I got the loan offer through a broker. However, they have added their fee to the loan!

[Deleted User]

You could pay the fee separately.

ftsos

I know that. I suppose what I want to know is if I pay on time every month and clear the loan amount, they can't take my property can they?

Alexd52

As long as you stick to the agreement, you will be ok.

ftsos

Thanks Alex. I am just so worried. If I had friends and family to borrow from I would.

@zx81, I checked with other credit score companies before, not recently, but its always been excellent, my score. Its not that, it being self employed and not being able to prove an income "properly". It makes the world of difference.

When I first bought a house I remember I had an absolute nightmare getting a mortgage because I was self employed, I had to get a specialist to help me, even though I had a really good deposit etc.

Anyway, all I need to know as long as I pay to off within the time stated then I should be okay, then its a relief.

[Deleted User]

ftsos wrote: »

@zx81, I checked with other credit score companies before, not recently, but its always been excellent, my score. Its not that,

Exactly my point. Your score's not a factor used in lending, and gives no indication of your credit worthiness. That's why you have to look at the data.

The score can be whatever you want it to be - it's all about lenders' criteria.

djphig

So this is a Buy To Let property? Together Money are a fantastic, very large company and we use them regularly.

What you are essentially applying for is a Buy to Let mortgage. If you want any more info please let me know