What purpose for loan do i state?

Options
2

Comments

  • MovingForwards
    MovingForwards Posts: 16,924 Forumite
    First Anniversary First Post Name Dropper Photogenic
    Options
    benbay001 wrote: »
    Thanks, ill put that the money is for a car.


    As i said, potentially not buying until March 2020.
    Reason being, the car i am after (a manual Corvette) is very rare and when one comes up at a good price, it sells within days, so i need to be in a position to go and buy it as soon as one is advertised at a good price.

    Well that makes sense and possibly a small detail you could have added in your original post.

    They pop up fairly frequently, as do many classic American motors, in Scotland, not sure whereabouts you are and how far you are looking.
    Mortgage started 2020, aiming to clear it in 2026.
  • benbay001
    benbay001 Posts: 408 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Options
    DCFC79 wrote: »
    I'd save up so when you come to look for a loan you don't need to borrow as much.

    Have you factored in cost of insurance/tax/petrol etc into your monthly budget ?


    I would normally save up and would normally tell other people to save up, but my wages have jumped big time in the last 2 years, as in September i will be finishing a 4 year apprenticeship. They will have nearly doubled.


    I gave up quite a lot of man toys when i started my apprenticeship, and now ive finished it, i would like a small reward for myself.


    Of course, im not guaranteed a job at the end of my apprenticeship, which is why i havnt started car shopping yet.


    As for factoring in running costs, yes i have. I have two cars at the moment, albeit my weekend car is cheaper to run than a corvette (MR2) my everyday car is dead cheap to run, its a Toyota iQ and is the car that i do the bulk of my annual mileage in.


    Assuming i don't get life style creep, i will have a smidge under £1k disposable income already allowing for £40 pw on "entertainment" and i already have a flat on mortgage, 15% pension contributions and intend to invest £400 per month.


    The car is at the bottom of its depreciation curve and is likely to appreciate if anything and as fast cars go, they are considered very reliable.

    For those of you that are curious, i have been quoted £600 for insurance (ill be 27yo).


    Again, thanks for the help.
    Im A Budding Neil Woodford.
  • benbay001
    benbay001 Posts: 408 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Options
    As i have read many and not yet posted mine, here is a SOA, i would genuinely appreciate criticism .
    My GF lives with me, but pays £200 pm and then i pay all the bills.
    I dont have a TV, may well be getting one soon, but she will pay licence as i dont watch it.


    Statement of Affairs and Personal Balance Sheet

    Household Information
    Number of adults in household........... 1
    Number of children in household.........
    Number of cars owned.................... 2

    Monthly Income Details
    Monthly income after tax................ 2200
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 200
    Total monthly income.................... 2400

    Monthly Expense Details
    Mortgage................................ 408
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 84
    Council tax............................. 91
    Electricity............................. 70
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 34
    Telephone (land line)................... 0
    Mobile phone............................ 17
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 17
    Groceries etc. ......................... 160
    Clothing................................ 10
    Petrol/diesel........................... 160
    Road tax................................ 27
    Car Insurance........................... 75
    Car maintenance (including MOT)......... 100
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 6
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 200
    Holiday................................. 33
    Emergency fund.......................... 41.6
    amazon.................................. 4
    Total monthly expenses.................. 1537.6


    Assets
    Cash.................................... 2000
    House value (Gross)..................... 115000
    Shares and bonds........................ 1700
    Car(s).................................. 20000
    Other assets............................ 0
    Total Assets............................ 138700


    Secured & HP Debts
    Description....................Debt......Monthly...APR
    Mortgage...................... 98000....(408)......2.67
    Total secured & HP debts...... 98000.....-.........-

    Unsecured Debts
    Description....................Debt......Monthly...APR
    Virg (24m 0% remain)...........2300......25........0
    potential car loan.............15000.....350.......5
    Total unsecured debts..........17300.....375.......-


    Monthly Budget Summary
    Total monthly income.................... 2,400
    Expenses (including HP & secured debts). 1,537.6
    Available for debt repayments........... 862.4
    Monthly UNsecured debt repayments....... 375
    Amount left after debt repayments....... 487.4

    Personal Balance Sheet Summary
    Total assets (things you own)........... 138,700
    Total HP & Secured debt................. -98,000
    Total Unsecured debt.................... -17,300
    Net Assets.............................. 23,400

    Created using the SOA calculator at https://www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    Im A Budding Neil Woodford.
  • Robisere
    Robisere Posts: 3,237 Forumite
    First Anniversary Photogenic First Post Combo Breaker
    Options
    As a former Classic Car workshop foreman and long-term aficionado of Yank metal, I hope you have somewhere secure to store your Corvette. You are correct in saying that the manual is more sought-after, but I wonder which model, from what era? 60 years the 'vette has been in production, I think in 7 generations (8th is about to be announced I believe)

    The early ones in good condition are worth a lot of money: show condition early 'vettes fetch astronomical prices. So, with all due respect, I don't think you are talking an early model. Have you any friends or contacts in the States? It might be more economical if someone over there could source a good one for you, if you don't mind LH drive.

    Good luck, and if you find and finance a good one, please let us know here how it went.
    I think this job really needs
    a much bigger hammer.
  • benbay001
    benbay001 Posts: 408 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Options
    Robisere wrote: »
    As a former Classic Car workshop foreman and long-term aficionado of Yank metal, I hope you have somewhere secure to store your Corvette. You are correct in saying that the manual is more sought-after, but I wonder which model, from what era? 60 years the 'vette has been in production, I think in 7 generations (8th is about to be announced I believe)

    The early ones in good condition are worth a lot of money: show condition early 'vettes fetch astronomical prices. So, with all due respect, I don't think you are talking an early model. Have you any friends or contacts in the States? It might be more economical if someone over there could source a good one for you, if you don't mind LH drive.

    Good luck, and if you find and finance a good one, please let us know here how it went.

    Hi,
    Im after a C5 Z06 preferably but am also considering normal C5s, aslong as they are manual.
    A few C6s creep into budget.

    Budget up to £20k.
    Im A Budding Neil Woodford.
  • benbay001
    benbay001 Posts: 408 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Options
    Sorry to bring back up my old thread, but since posting, i have received and signed my contract.

    If i was applying for a loan today, can i state my income as £37200, or would it have to be my current salary of £26500?

    As i think i mentioned above, the job is with the same company that i am about to complete my apprenticeship with, so there is no probationary period.

    Is it realistic that i could contact the loan provider and ask for written confirmation that they are willing for me to put down my future income?

    The car in question that im worried i will miss out on can be viewed here : https://www.pistonheads.com/classifieds/used-cars/chevrolet/corvette/corvette-torch-red-c5-z06-405hp-2002/9853312

    Thanks
    Ben
    Im A Budding Neil Woodford.
  • Bermonia
    Bermonia Posts: 977 Forumite
    First Post
    Options
    You put done your current salary, as they will usually check your previous three months income to ensure the figures add up... keep in mind if you take the loan now then you will need to start repaying now, so only your current salary is relevant
  • benbay001
    benbay001 Posts: 408 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Options
    Bermonia wrote: »
    You put done your current salary, as they will usually check your previous three months income to ensure the figures add up... keep in mind if you take the loan now then you will need to start repaying now, so only your current salary is relevant
    When the salary ive stated, doesnt match whats been going in, do they decline, or ask for proof?
    Im A Budding Neil Woodford.
  • ffacoffipawb
    ffacoffipawb Posts: 3,593 Forumite
    Name Dropper First Anniversary First Post Photogenic
    Options
    benbay001 wrote: »
    When the salary ive stated, doesnt match whats been going in, do they decline, or ask for proof?

    Careful in case you get a CIFAS marker for loan fraud.
  • benbay001
    benbay001 Posts: 408 Forumite
    First Anniversary Photogenic Name Dropper First Post
    Options
    ffacoffipawb wrote: »
    Careful in case you get a CIFAS marker for loan fraud.
    I dont see how that is fair, if they ask what my salary is, and i state it, honestly and accurately, but a "computer says no", sure they at least give me a change to prove it first?
    Im A Budding Neil Woodford.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.3K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 248K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards