Low income, excellent score, poor chances..what to do?

mosaicsquares

Hi, I have a new part time job, paying approx £610 per month. This money is being all set aside to buy some land.. My partner pays an existing mortgage.
I have approx 45000, bound up in the house, but I am not on the deeds, as at the time of taking our mortgage out I was not working and the Halifax refused to add me despite providing a large sum for deposit.

Now I want to buy some land to plant a woodland.. my credit score seems excellent, but my options to borrow are coming back poor. E.g 20% Tesco likelihood to borrow £25000. First Direct APR was 6.6% for £30000.

Thought I could possibly pull the money back out of the house when we remortgage but then this would probably end up costing much more in interest.

Should I just go ahead and apply for the loans with poor chances?

Not sure if I'm classed as a homeowner and whether that makes any difference to my applications. The next time we remortgage I will be on the deeds as I now have a job.

Which way to go, so I can get on with my project.

Thanks MSE community 😏

boo_star

You're not a homeowner if you're not on the deeds or mortgage.

Why do you want to borrow money to buy land to plant woodland?

Can't your partner get this loan?

mosaicsquares

Hi, my partner has no spare money, but I do now I have a job,

I love trees, grow them, make stuff from them and it's my lifetime ambition to plant a woodland.

Ben8282

I'm sorry but I think that your chances of getting an loan for £25000.or £30000 with a monthly income of .£610 are very low indeed.

boo_star

mosaicsquares wrote: »

Hi, my partner has no spare money, but I do now I have a job,

I love trees, grow them, make stuff from them and it's my lifetime ambition to plant a woodland.

Paying £30000 for a hobby is silly and won't get you a loan. I appreciate we need more trees but you must accept this is a stupidly risky proposition for a lender.

[Deleted User]

mosaicsquares wrote: »

Hi, I have a new part time job, paying approx £610 per month. This money is being all set aside to buy some land.. My partner pays an existing mortgage.
I have approx 45000, bound up in the house, but I am not on the deeds, as at the time of taking our mortgage out I was not working and the Halifax refused to add me despite providing a large sum for deposit.

Now I want to buy some land to plant a woodland.. my credit score seems excellent, but my options to borrow are coming back poor. E.g 20% Tesco likelihood to borrow £25000. First Direct APR was 6.6% for £30000.

Thought I could possibly pull the money back out of the house when we remortgage but then this would probably end up costing much more in interest.

Should I just go ahead and apply for the loans with poor chances?

Not sure if I'm classed as a homeowner and whether that makes any difference to my applications. The next time we remortgage I will be on the deeds as I now have a job.

Which way to go, so I can get on with my project.

Thanks MSE community 😏

That doesn't sound right about Halifax refusing to put you on the mortgage because you weren't working at the time, especially when you contributed most of the deposit. Lots of couples apply for a joint mortgage when one person isn't working. You say partner so I presume this means you're not married. What is legally protecting your money in the event of a relationship breakdown or god forbid your partner dying?

Going back to your original question, you have no chance of borrowing £25k to £30k on a part time income of £610 a month. Even if you are added to the mortgage and deeds of the house you will not pass affordability. Furthermore, a lot of personal loans' T&C preclude them from being used to purchase land.

warby68

What to do?

Assuming this is real, as its a very 'unworldly' question, the best thing is probably to look at funding it yourself over time, and preferably with your partner fully on board as to the use of your limited income for this purpose. You already say they have no spare.

Income of £7k pa could see you save the required amount in 4 years which is not forever. Or get a higher income to achieve it sooner.

Your chances of borrowing this amount for this purpose on that income are probably zero. Your chances of borrowing £5000 are remote to be honest.

Your mortage situation doesn't sound usual either - so check out how protected you are especially if unmarried.

jonesMUFCforever

OP no personal loan provider will lend to you to buy land.
IMO You will need to look at some kind of business loan or a secured loan such as a mortgage.

If Halifax cannot help you contact a local mortgage broker.

Sea_Shell

Wanting to buy land and plant trees is a noble ambition, if you're wealthy and have money kicking around "spare".

However, to want to borrow that much cash for this purpose seems folly, at best, bonkers at worst. Especially as you don't currently have security of a roof over your head (from what you've posted).

I'd be rethinking my priorities.

Dangermac

mosaicsquares wrote: »

Hi, I have a new part time job, paying approx £610 per month. This money is being all set aside to buy some land.. My partner pays an existing mortgage.
I have approx 45000, bound up in the house, but I am not on the deeds, as at the time of taking our mortgage out I was not working and the Halifax refused to add me despite providing a large sum for deposit.

Now I want to buy some land to plant a woodland.. my credit score seems excellent, but my options to borrow are coming back poor. E.g 20% Tesco likelihood to borrow £25000. First Direct APR was 6.6% for £30000.

Thought I could possibly pull the money back out of the house when we remortgage but then this would probably end up costing much more in interest.

Should I just go ahead and apply for the loans with poor chances?

Not sure if I'm classed as a homeowner and whether that makes any difference to my applications. The next time we remortgage I will be on the deeds as I now have a job.

Which way to go, so I can get on with my project.

Thanks MSE community ��

Even if you achieved a very decent rate, to borrow £30,000 over a 5 year period would be around £550 - £600 per month.

You wont be classed as a homeowner, as you are not legally the homeowner.

I cannot see that:

1. This is affordable
2. You would achieve a decent rate from mainstream lenders

Also, mainstream lenders would not normally provide this type of loan for land purchase

I dont think that your plan is realistically viable.

What is your view?

DM

DCFC79

I have to say OP I agree with everyone else, your chances of a loan is very low. You really need to sort out the money you put down as a deposit.