Secured Loan Advice

Marcus3344

Hi

We are looking to obtain a secured loan to pay off all of our cards and loans etc.
We applied 3 months ago, but as our only income was benefits based, we were rejected all times due to the affordability checks.

Since then I have gained employment and have been working for 10 weeks now, on a full time permanent basis.

Our details are below:-

Property Valuation £250,000
Mortgage owing £103,000
Secured Loan £18,000
Loans and C/Cards £30,000
Family Loans £12,000

(StepChange DMP) £15,000 (Will not pay this off)

Our Income is Salary £2000 per month plus £600 benefits.

We are looking to secure £60,000 Paying off the Secured Loans plus, credit cards, loans and family loans.

My questions are:-

1) Do I have to wait until a full three months of employment is completed before I can apply?

2) What is the likelihood we may be successful?

3) Any recommendations of who to apply to?

We would really appreciate any feedback positive or negative,

Thanks
Marcus

[Deleted User]

Don't convert unsecured debt into secured debt as you may lose your house if you lose your job

Debt consolidation doesn't work - you would fail affordability as you cannot afford the new debt + the old debt (how lenders assess you as you might just waste the money on other things)

Go to the debt free forum on here and ask for advice

Grumpelstiltskin

Why on earth are all your debts not included in your DMP?

Have you taken them out since you have been in a DMP?

If so enormous alarm bells ringing.

You need to sort your budget out now and increase your DMP to include everything not just go and add to the debt.

MEM62

Marcus3344 said:

Our Income is Salary £2000 per month plus £600 benefits.

We are looking to secure £60,000 Paying off the Secured Loans plus, credit cards, loans and family loans.

Unfortunately, with your income and level of debt that just isn't going to happen.  That is actually a good thing as you would only be digging yourself a deeper hole.  As you should have realized by now, you cannot borrow your way out of debt.  You need to address the root cause of your overspending and, once that is under control, find other ways of dealing with your current debt.         

Ebe_Scrooge

Marcus3344 said:

2) What is the likelihood we may be successful?

Zero

Marcus3344 said:

3) Any recommendations of who to apply to?

Stepchange.

Sorry, this probably sounds really harsh.  But first off, there's no way you will get a consolidation loan for 60k

Marcus3344 said:

we were rejected all times due to the affordability checks.

Any lender has to take the view that additional lending will be in addition to, not instead of, your existing debt - they cannot force you to use the new loan to repay existing debt.  And turning unsecured debt into secured debt is never a good idea.  Default on the former, and you trash your credit files.  Default on the latter and you end up sleeping in a cardboard box alongside the canal.

No-one is going to lend you more money.  Your best bet really is to get back in touch with Stepchange and ask for help - they are the experts in such matters, and will be well-placed to give you constructive advice and support. 

This post is not meant to sound mean or nasty - it really is, in my opinion, the best advice I can offer.

fatbelly

There really are lots of red lights flashing for us on your first post as we've seen this before and in some cases done this before.

Seriously - the best advice is to go to the debt free wannabee board and post a statement of affairs

https://www.lemonfool.co.uk/financecalculators/soa.php

Please format for mse

macman

Al the advice given above is spot-on. I'm more than a little gobsmacked that you thought you would be able to borrow £60k whilst your only income was from benefits. 
Just how did you plan to service that debt at the time?

Marcus3344

Thank you for all of the feedback.

Previous situation
Yes I agree we were totally unrealistic to try and release some equity in our property to help service our debts.
A little more back ground, is that my wife ill and will not work again.
We also have a disabled daughter.

Our logic was that we have a lot of equity in our property, YES we have taken additional credit on during our DMP, but unfortunately this was necessary whilst dealing with my wife and daughters diagnosis.

As a family we are finally now settled, and I the time is right to sort the finances out.

Current situation
I am now in full time permanent employment.
I intend to come off StepChange as I appreciate we have not adhered to their terms by taking additional credit.
I intend to deal with the creditors directly.
Comments would be appreciated????

I made a few typos on my original post.
I made some errors on my original post, our actual monthly income is £3400
(I copied an old line of text)

Taking this into consideration, I did not think our reasoning with the below figures would have been that unrealistic?
Property Valuation £250,000
Mortgage owing £103,000
Secured Loan £60,000 (if successful)
Would still leave £87,000 equity in our property?

And our income and expenditure would go from:-

£3400 per month / £2500 per month to:- (We were under pressure to address our family debts that's where the surplus funds had to be send - family fall out)

£3400 per month / £1800 per month (BASED ON NEW SECURED REPAYMENT OF APPROX £400 per month)

Again, any feedback would be appreciated.....

Thank you
Marcus

Grumpelstiltskin

You have received feedback and the overwhelming opinion is don't do it.

If you do decide to ignore everything that has been said then are you 100% sure you would get a loan that  only wanted repayments of £400 monthly?

Also would you be prepared to close all credit cards and never spend any more money on credit?

Problem is when the secured loan company sees your present debts they will run a mile.

MEM62

The earlier advice still stands.  You will not secure further borrowing with your income and debt levels.  You need another way of addressing your debts.   

sammyjammy

60k secured loan even if you take it over a long term will be much more than £400, you'll pay high interest rates and its unlikely to be for a fixed rate.  Please don't do it, it'll be the worst mistake you ever made.  Include the rest of your debt in the DMP, if you go DIY then you can preferentially repay your relatives.