Getting a loan when retired

greencycle

Hi - We want to take out a loan in order to purchase a used car. We are retired (early 60s) with occupational pensions. I am also part time self employed. We do actually have the money to buy a car, but we would prefer to leave our isa's eg undisturbed and use a low interest loan which I can pay through my business.

Is anyone aware of a lender / lenders who would consider us. IE Retired, no mortgage with regular Pensions etc. The usual lenders Tescos, M&S, Post Office don't (online) allow us to represent our actually financial circumstances and the advertised rates shoot up to 15% which is of course unacceptable.

TadleyBaggie

I've been retired almost 3 years and took out a loan for £10K with my bank (Nationwide) around 18 months ago at 3.6%. It's all down to affordability.

Sea_Shell

Are they cash or S&S ISAs??

Are you hoping they outperform the interest on the loan, or some other reason?

tacpot12

Paying for a loan through the business when the loan isn't wholly and necessarily in the course of business is likely to land you in hot water with HMRC, and you will be committing fraud if you take out a business loan and buy a car for your own use. Why not just get a loan yourself and pay the loan back yourself?

robber2

tacpot12 wrote: »

Paying for a loan through the business when the loan isn't wholly and necessarily in the course of business is likely to land you in hot water with HMRC, and you will be committing fraud if you take out a business loan and buy a car for your own use. Why not just get a loan yourself and pay the loan back yourself?

Only if the OP is trading via a limited company, he would also potentially be liable for a significant taxable benefit hit by HMRC. If on the other hand he is a sole trader the above would not apply.


Rob

DevonFella

My wife and I have just secured a loan with our High Street bank (with whom I have banked for many decades) at 3.3%, the lowest APR in the borrowing band. I am retired and my wife is still earning from self employment but taking an NHS pension early soon. It took two hours on the phone for both of us being questioned on out outgoings etc but worth it for the end result. We also have the best credit score. Might want to check yours?

pjcox2005

Could you look at 0% credit cards? May have same issues on income but if you get those either for the purchase, or other purchases (weekly shop, petrol) etc to free up cash then it may be most efficient.