Getting a Loan with no Visa

Candyapple

Txerja wrote: »

On the other hand, I have quoted myself (barely indebted and very good numbers, payments, etc.) and I got 3.2% APR. No visa information is requested at all. So it would be a matter of going through the figures, weighting the options and maybe requesting it on my name and she paying back month after month. Do you think that a loan of this kind (thinking always of overpaying £75-100 per month) would affect substantially a mortgage?

The lesson learned here is that the bank knowing you the best is the one you bank with. I don't think they have taken into account any credit score reference. However, they know very well our payslips, payments, outgoings, credit card behaviours, savings... and they are in the position of offering 3.0% or 3.2% APR. In my view, very low interest rate. Obviously, to have a good credit file is essential as well.

Last year when I applied for my mortgage, my broker told me that any cc/loan debt we had, the bank would take 5% total as minimum monthly repayment and deduct this from your salary multiples so your mortgage offer amount will be decreased accordingly (regardless of what your actual repayment is or even if it’s a 0% deal).

Assuming you will be a single applicant and have no other cc debts/loans/overdraft or car finance and just based on the £13.5k you would take out:

5% of £13.5k = £675 x 12 = £8.1k

Assuming your salary is £50k……
£50k less £8.1k = £41,900 salary the broker would be working with

£41.9k x 4 multiple (average) = £167,600. This is the amount of mortgage you would roughly be able to take out, plus whatever deposit amount you have on top.

Don’t forget that 3% is Nationwide’s headline rate. Meaning it is reserved for top 51% of applicants. Even if your credit history is impeccable, they still may offer you a higher APR because you don’t fit their customer profile. Until you actually click through and do the hard credit search, all this loan talk is hypothetical.

Txerja

Candyapple, thank you very much for your response. It is really useful. Now I have another piece of information to decide how to proceed.

Candyapple wrote: »

Don’t forget that 3% is Nationwide’s headline rate. Meaning it is reserved for top 51% of applicants. Even if your credit history is impeccable, they still may offer you a higher APR because you don’t fit their customer profile. Until you actually click through and do the hard credit search, all this loan talk is hypothetical.

Those numbers are internal applications more than quotations. I saved both applications and, in my case, as I do not require a visa, the system says that I would have the money in 2 hours in the account. I would not even need to go to the branch.

I will keep checking alternatives because I would not like to deteriorate my chances with a mortgage

Kind regards