Personal Loan Advice

JaneJam

I was hoping to get some advice/recommendations on getting a personal loan from a bank. I've done some research and found out that my bank (Lloyds) offers personal loans up to £35,000. In 2024, I would like to take around £30,000-£35,000 of loan to help me buy a property abroad for my parents. 

However, I don't know if I'm eligible for this loan, so I was wondering if it will be a good idea to make an appointment with someone at the bank to discuss what conditions I need to satisfy in order to be eligible for this sum of money in 2024. Would this be a sensible approach? 

Many thanks, 
Jane

DrEskimo

I don't think it would be helpful to look at you circumstances now to determine your eligibility in 4yr time. It will be broadly based on your level of income, debt levels and credit history. Where do you think you would be in 2024 regarding these?

You have 4yrs now, so if you are able to put away ~£650/month you will have the money without needing to borrow it. Is that possible?

Would you be looking to get a mortgage as well as using this loan as a deposit?
If so, that's unlikely to work.

JaneJam

DrEskimo said:

I don't think it would be helpful to look at you circumstances now to determine your eligibility in 4yr time. It will be broadly based on your level of income, debt levels and credit history. Where do you think you would be in 2024 regarding these?

You have 4yrs now, so if you are able to put away ~£650/month you will have the money without needing to borrow it. Is that possible?

Would you be looking to get a mortgage as well as using this loan as a deposit?
If so, that's unlikely to work.

Thank you for your response. The nuance is that during this time I will be saving money and I need the other half which I mentioned in my post to make the purchase. In short, this loan will be the other 45-50% I need to actually buy a property. 
I appreciate that there are variables that cannot be determined in advance, but I thought it would be important to know what income and other variables the bank think are important to qualify me for the loan. For example, if they say that I would need to be earning £40,000 in 2024 to get this loan, I know that it won't me possible in 2024. 

I cannot take a mortgage to buy a property abroad, so my only option is to save enough and then get a personal loan in order to be able to buy it. 

DCFC79

JaneJam said:

DrEskimo said:

I don't think it would be helpful to look at you circumstances now to determine your eligibility in 4yr time. It will be broadly based on your level of income, debt levels and credit history. Where do you think you would be in 2024 regarding these?

You have 4yrs now, so if you are able to put away ~£650/month you will have the money without needing to borrow it. Is that possible?

Would you be looking to get a mortgage as well as using this loan as a deposit?
If so, that's unlikely to work.

Thank you for your response. The nuance is that during this time I will be saving money and I need the other half which I mentioned in my post to make the purchase. In short, this loan will be the other 45-50% I need to actually buy a property. 
I appreciate that there are variables that cannot be determined in advance, but I thought it would be important to know what income and other variables the bank think are important to qualify me for the loan. For example, if they say that I would need to be earning £40,000 in 2024 to get this loan, I know that it won't me possible in 2024. 

I cannot take a mortgage to buy a property abroad, so my only option is to save enough and then get a personal loan in order to be able to buy it. 

Things could change in 4 years at the bank for example the bank could say you coukd borrow x amount now but 4 years time it changes so you need to earn more.

Just save save save.

DrEskimo

JaneJam said:

DrEskimo said:

I don't think it would be helpful to look at you circumstances now to determine your eligibility in 4yr time. It will be broadly based on your level of income, debt levels and credit history. Where do you think you would be in 2024 regarding these?

You have 4yrs now, so if you are able to put away ~£650/month you will have the money without needing to borrow it. Is that possible?

Would you be looking to get a mortgage as well as using this loan as a deposit?
If so, that's unlikely to work.

Thank you for your response. The nuance is that during this time I will be saving money and I need the other half which I mentioned in my post to make the purchase. In short, this loan will be the other 45-50% I need to actually buy a property. 
I appreciate that there are variables that cannot be determined in advance, but I thought it would be important to know what income and other variables the bank think are important to qualify me for the loan. For example, if they say that I would need to be earning £40,000 in 2024 to get this loan, I know that it won't me possible in 2024. 

I cannot take a mortgage to buy a property abroad, so my only option is to save enough and then get a personal loan in order to be able to buy it. 

I don't know if there are specific income amounts that are required, but it would obviously play a big factor in assessing affordability.

Whilst it's impossible to say what the rates might be in 2024, at the moment most lenders will charge around 6% as the representative rate. Considering you could get offered a much higher APR, would the repayments be affordable? 

Is the 2024 timeline set in stone? As above, I would just keep saving and get as much as possible. If you can push it back a couple of years, borrowing ~£20k would likely be much more feasible....well....depending on what ever the world looks like in 2026!

Best of luck with it. Sounds like you are working towards a very lovely gesture for your parents!

jjames1985

However, we will not offer a loan for:

• Speculative purchases, for example: gambling, investments and share purchases
• Any illegal purposes
• Business related purposes
• Purchase/Lease of land or property, either full or part purchase (including deposit)
• Timeshares/Holiday Clubs

you'll probably find almost all lenders specifically exclude using personal loans to purchase property.

JaneJam

DrEskimo said:

JaneJam said:

DrEskimo said:

I don't think it would be helpful to look at you circumstances now to determine your eligibility in 4yr time. It will be broadly based on your level of income, debt levels and credit history. Where do you think you would be in 2024 regarding these?

You have 4yrs now, so if you are able to put away ~£650/month you will have the money without needing to borrow it. Is that possible?

Would you be looking to get a mortgage as well as using this loan as a deposit?
If so, that's unlikely to work.

Thank you for your response. The nuance is that during this time I will be saving money and I need the other half which I mentioned in my post to make the purchase. In short, this loan will be the other 45-50% I need to actually buy a property. 
I appreciate that there are variables that cannot be determined in advance, but I thought it would be important to know what income and other variables the bank think are important to qualify me for the loan. For example, if they say that I would need to be earning £40,000 in 2024 to get this loan, I know that it won't me possible in 2024. 

I cannot take a mortgage to buy a property abroad, so my only option is to save enough and then get a personal loan in order to be able to buy it. 

I don't know if there are specific income amounts that are required, but it would obviously play a big factor in assessing affordability.

Whilst it's impossible to say what the rates might be in 2024, at the moment most lenders will charge around 6% as the representative rate. Considering you could get offered a much higher APR, would the repayments be affordable? 

Is the 2024 timeline set in stone? As above, I would just keep saving and get as much as possible. If you can push it back a couple of years, borrowing ~£20k would likely be much more feasible....well....depending on what ever the world looks like in 2026!

Best of luck with it. Sounds like you are working towards a very lovely gesture for your parents!

Thank you very much, DrEskimo. I do understand your reasoning of taking some extra time for this purchase, but I would really love to be able to do it by 2024 or 2025 the latest. 

The repayments should be fine, I calculated that. The only fear for me is that they won't consider me for this loan, that's why I thought to ask if it would be wise to establish a relationship with the bank as early as possible to learn if they can advise me how I could qualify for the loan with some certainty. 

Sincere thanks, 
Jane

JaneJam

jjames1985 said:

There are some things a personal loan can't be used for. These include: 
Buying or putting down a deposit on a property or land

you'll probably find almost all lenders specifically exclude using personal loans to purchase property.

Thank you for this insight. I was not aware that there could be some difficulties to get a loan to help a purchase of a property. I will try to check if Lloyds specifically exclude the purchase of property if you take a personal loan from them. 

jjames1985

JaneJam said:

jjames1985 said:

There are some things a personal loan can't be used for. These include: 
Buying or putting down a deposit on a property or land

you'll probably find almost all lenders specifically exclude using personal loans to purchase property.

Thank you for this insight. I was not aware that there could be some difficulties to get a loan to help a purchase of a property. I will try to check if Lloyds specifically exclude the purchase of property if you take a personal loan from them. 

they do.  that was a direct quote from their website.
https://www.lloydsbank.com/loans/help-and-guidance/how-to-get-a-loan.html

ARH_2

Here's a thought: Stoozing. You've got four years to build up 30-35k. Seems entirely do-able, and then it's interest free. You'd be aiming for the interest you can earn to pay any future BT fees.  In your shoes I'd apply for a 0% purchases card today. 

sleepyjones

Why can't you get an overseas mortgage?
A broker should be able to sort this for you.