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Why Can't I get a home improvement loan?
I am currently renovating a barn which has a value of around £650,000. I do not have a mortgage, or any loans or any dependents. me an my partner are both self employed. I earn £27,000 per year. We live at the barn address which was only created by the council last year, so the address is only 6 months old
I am looking to borrow around £45,000 to complete the renovation and i just keep getting told I do not meet the criteria, but i have no idea why? is it because the address is new?
Can anyone advise?
Many Thanks
I am looking to borrow around £45,000 to complete the renovation and i just keep getting told I do not meet the criteria, but i have no idea why? is it because the address is new?
Can anyone advise?
Many Thanks
0
Comments
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Is this an unsecured loan in your name only? It could well be down to how much you are asking to borrow. It’s much more than a full year’s salary, which is pretty high.
How do you plan to service such a large debt?2 -
I would say that its because your salary is too low. You are asking for 166% of your income. That's not going to happen.2
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A mortgage is probably going to be the better option.2
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OP earns £27k
Loan required £45k
Will it be a joint loan with partner?
What does partner earn?
Lenders may also consider whether either the OP or partner were impacted by COVID in their self-employed businesses.ck1976 said:I am currently renovating a barn which has a value of around £650,000. I do not have a mortgage, or any loans or any dependents. me an my partner are both self employed. I earn £27,000 per year. We live at the barn address which was only created by the council last year, so the address is only 6 months old
I am looking to borrow around £45,000 to complete the renovation and i just keep getting told I do not meet the criteria, but i have no idea why? is it because the address is new?
Can anyone advise?
Many Thanks
1 -
Do you have any other debts or financial committments? What's the nature of the improvements?1
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Thanks for the comments
I asked for a 45K home improvement loan over 10 years.
I did look for a mortgage a few months back, but I was told by RBS and Barclays they wouldn't lend as we had been impacted by covid.
The property is in both our names, so i asked for the loan in both our names.
The conversion of the barn to a residential property is 75% complete, we just need the 45K to finish it of the property - so some windows, doors, fire place, pointing, etc the finished value of the property is £650,000 plus
I have no other dept. but my partner does have a small loan.
He will also be doing some work on the property so may not be earning much
I thought it would be easy to borrow 45K against a property valued at £650,000?
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Unsecured loans are not very likely above 20-25k unless you're earning tonnes of cash, hence mortgage suggestion3
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ck1976 said:
I thought it would be easy to borrow 45K against a property valued at £650,000?
Needing to borrow over ten years is a bit of a red-flag, that;s an awful long time for an unsecured loan, and sugggests that you are badly stretched.2 -
I understand, thank you.
I need a mortgage against the property, but i cant seem to get a mortgage either?0 -
ck1976 said:
The conversion of the barn to a residential property is 75% complete, we just need the 45K to finish it of the property - so some windows, doors, fire place, pointing, etc the finished value of the property is £650,000 plus
4
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