Loan companies not listening....

welshgje

Hi there,

I'm after some advice is possible. I have a loan about to end which is around £600 remaining @ ~£280 / month(Sainsbury). I also have a VW Finance Lease which is ending this month for which I need to pay a bubble of ~£ 14000 (@£379.99 / month currently)

So - I've gone to Sainsburys after they send us a letter letting us know we could top up or borrow again. So we asked them for £15000 to pay for the car bubble and move our remaining loan over. Made sense. It meant another 5 year loan but instead of £660 per month as we are paying now, it would be one payment of @£286.00 - Saving around £320 per month. Brilliant!!! Made sense to us. Or so we thought. 

We are now being refused by everyone at any low rate. Sainsburys have refused is by saying we are not eligible criteria. Tesco have said 50% probability - forgetting the fact we have used Tesco before and never missed a payment. Plenty of stupid rate loans of 14% and above.

We have no idea what to do. I'm finding the online systems do not look at things that are ending etc etc. We are stuck.

I'm sure there are plenty of opinions out there - but any advice? Who could we speak to? Am I better going into a bank and asking to a human?

Cheers

welshgje

SaverRate

welshgje said:

Hi there,

I'm after some advice is possible. I have a loan about to end which is around £600 remaining @ ~£280 / month(Sainsbury). I also have a VW Finance Lease which is ending this month for which I need to pay a bubble of ~£ 14000 (@£379.99 / month currently)

So - I've gone to Sainsburys after they send us a letter letting us know we could top up or borrow again. So we asked them for £15000 to pay for the car bubble and move our remaining loan over. Made sense. It meant another 5 year loan but instead of £660 per month as we are paying now, it would be one payment of @£286.00 - Saving around £320 per month. Brilliant!!! Made sense to us. Or so we thought. 

We are now being refused by everyone at any low rate. Sainsburys have refused is by saying we are not eligible criteria. Tesco have said 50% probability - forgetting the fact we have used Tesco before and never missed a payment. Plenty of stupid rate loans of 14% and above.

We have no idea what to do. I'm finding the online systems do not look at things that are ending etc etc. We are stuck.

I'm sure there are plenty of opinions out there - but any advice? Who could we speak to? Am I better going into a bank and asking to a human?

Cheers

welshgje

This is the problem with PCP - financing the balloon payment. While its a little late now you would have been better getting HP if you were always going to keep the car. PCP is designed for those that trade in their cars every 3-5 years depending on the length of the agreement. 

Have you asked VW finance if they have any finance solutions for the balloon payment? 
No point going into branches of banks as it wont change the decision. You could try Tesco with their 50% probability but highly likely to be a higher rate than advertised. 

The problem with getting a bank loan is they will take your existing finance into account they don’t care its ending soon or the loan will be used to pay off the existing finance. 

So your options would be:

- Ask VW finance if they have any finance solutions for the balloon payment (as suggested above)
- Does the company you work for offer any loan scheme? 
- Sell/trade in your car (Motorway/WBAC/Evan halshaw etc) and they will settle the finance and pay you any of the remainder. Then  get a car with the remainder of any money left so no finance on the car.
-Sell/trade in your car (as above) then either buy a used car or new car on a new car finance product 
- If you can somehow get the £15,000 balance on a 0% credit card (Money transfer card or get an interest free purchases card if your buying something else that’s £15k). Then keep balancing transferring when the 0% period ends (not always possible if not eligible) 

Phantom151

Can you pay the £600 loan off and then apply? Do they still do consolidation loans? I remember doing it that way a few years ago as you can then truthfully tell them you would have no other payments.

welshgje

I'm thinking of asking my Dad for help. He will apply but I will pay and sort it all out - for the next five years. Trying to avoid that as t my age I shouldn't be going for help from my Dad. It's just we mis-judged something. Kind of embarrassing but nobody wants to help.

Thought about going to a broker to help out. Or even a secured loan - despite my Mum saying to never have one. My job is safe for the future - so maybe that is the way?

G

Thrugelmir

You owe £14k on the car and are applying for a further £14k advance. Making £28k owed. That's the issue.

Do you owe money on any other loans or credit cards? 

[Deleted User]

welshgje said:

 It meant another 5 year loan but instead of £660 per month as we are paying now, it would be one payment of @£286.00 - Saving around £320 per month. Brilliant!!! Made sense to us. Or so we thought. 

Unless you're expecting to fall on hard times, it makes no sense to lower your paymemts and go for a longer term and it'll cost you far more in interest. Rather than saving money, you're actually throwing it away.

It may be the long term that is worrying lenders, as well as your existing indebtedness.

MrFrugalFever

Your current finance arrangement is likely to be able to be re-financed on a fixed rate via Hire Purchased which would be secured against the car and likely accepted unless you have defaulted or missed payments. Your first port of call is discussing options with VWFS I think.

welshgje

Thrugelmir said:

You owe £14k on the car and are applying for a further £14k advance. Making £28k owed. That's the issue.

Do you owe money on any other loans or credit cards? 

Yes - I'm guessing that's what the online systems are seeing. The reality is one will pay the other - lowering in the payment. Is that what I mean? I'm crap with finances.

Yes - my wife has a car on Toyota finance. That comes to an end in June but we are just giving that one back. Awful little car it has been.

Credit card - yes but not massively used. There for emergencies.

As I sit here, we are talking about selling up everything. Pulling all our finances in and seeing where we are. Especially with prices going up. Maybe it is time to downsize for a year or two.

Thanks everyone for comments. Really appreciated.

G

DCFC79

welshgje said:

I'm thinking of asking my Dad for help. He will apply but I will pay and sort it all out - for the next five years. Trying to avoid that as t my age I shouldn't be going for help from my Dad. It's just we mis-judged something. Kind of embarrassing but nobody wants to help.

Thought about going to a broker to help out. Or even a secured loan - despite my Mum saying to never have one. My job is safe for the future - so maybe that is the way?

G

You never turn unsecured debt into secured debt, you risk losing the home plus paying out more in interest.

MattMattMattUK

From reading through this I get the impression you are over extended financially and carrying too much debt, is the solution really more debt? Would it be better to hand the car back and buy something cheaper?

Also with the sound of it you have little slack in the system, on that basis I would head over to the Debt Free Wanabee section of this forum and look to sort out your budget, aim to reduce debt as fast as possible, cut wastage, then build up a surplus, and ideally aim for your only debt in the future to be a mortgage. 

MEM62

welshgje said:

I'm thinking of asking my Dad for help. He will apply but I will pay and sort it all out - for the next five years. 

Unless he can stump up the cash and afford to write it off - don't drag your dad into this.  By taking a loan on your behalf he would be dragged into your financial woes should your circumstances take a downward turn.