How do I improve that home?

qvorum · 6 May 2018 at 11:45PM

Hey guys,

If possible, I need a guesstimate of my chances to get approved for a home improvement loan.

Salary: £45K
Credit score: 972
Debt: £10K (government student loan being paid into eternity); £10K outstanding on a loan with Metro Bank (will be paid off within 2 years)

I am looking for a home improvement loan. I would like to get £30K. I have a country-side house that is in bad need of repair. The property is abroad. Would that play a role in their decision? I am not a property owner in the UK.

I would like to hear about my chances of getting approved. How much would banks normally lend for home improvement purposes? From a bank's perspective, am I in too much debt already (not even sure if the student loan counts - my monthly payments are only £60)?

I am not worried about the monthly payments on £30K - currently I am easily saving £600 per month. And my salary will be £50K within a few months. I am very disciplined with money.

Thanks

forgotmyname · 7 May 2018 at 4:04AM

qvorum wrote: »

Hey guys,

If possible, I need a guesstimate of my chances to get approved for a home improvement loan.

Salary: £45K
Credit score: 972 Lenders don't see this.. Useless number.
Debt: £10K (government student loan being paid into eternity); £10K outstanding on a loan with Metro Bank (will be paid off within 2 years)

I am looking for a home improvement loan. I would like to get £30K. I have a country-side house that is in bad need of repair. The property is abroad. Would that play a role in their decision? I am not a property owner in the UK.

I would like to hear about my chances of getting approved. How much would banks normally lend for home improvement purposes? From a bank's perspective, am I in too much debt already (not even sure if the student loan counts - my monthly payments are only £60)?

I am not worried about the monthly payments on £30K - currently I am easily saving £600 per month. And my salary will be £50K within a few months. I am very disciplined with money.

Thanks

20k debt on a 45k salary?

Have you bought the property? what is it worth?

How much do you have saved towards the repairs?

Pixie5740 · 7 May 2018 at 11:00AM

You could apply to whichever institution has given you a rating of 972.....ha ha only joking, they don't lend money.

https://www.moneysavingexpert.com/loans/credit-rating-credit-score

£30k is a lot to borrow on an income of £45k for someone who already owes £10k to Metro Bank and presumably either lives with family or rents. You could try using the MSE loan eligibility calculator.

https://www.moneysavingexpert.com/eligibility/loans-calculator/

Herzlos · 7 May 2018 at 12:08PM

You might struggle with a £30k loan on a £45k salary anyway.

If you're putting £600/month away into savings, can you improve the house piecemeal? What is it your trying to do?

Sncjw · 7 May 2018 at 12:59PM

A 30k loan whe. You have 10k loan already so that!!!8217;s 40k.

Would you lend that amount of money to someone who is only earning 5k over the loan amount.

No chance. If your saving £600 a month why not do bits at a time. Or why not pay more money toward the metro debt to clear it off quicker

DCFC79 · 7 May 2018 at 1:02PM

Cant see you getting a loan @ £30k when you already have £10k, consider doing it in stages eg most important first and work through the list.

jonesMUFCforever · 7 May 2018 at 6:07PM

''I am very disciplined with money'' says the OP but has a £10k loan and wants another for £30k for a property abroad but is able to save £600 per month - pull the other one please.

enthusiasticsaver · 7 May 2018 at 9:37PM

You wont get a secured loan on a property abroad and you will struggle to get £30k on unsecured as you already have £10k and it is unlikely lenders will go up that high without security anyway.

As others have said maybe reduce the amount you need and do it in stages or save up.

qvorum · 7 May 2018 at 9:42PM

Hey guys,

Thanks for the feedback. That chance calculator was useful. So is knowing that the 972 is a rather useless metric. Sneaky credit agencies!

I will settle for less than 30K, if I have to. Truth be told, Experian gives my chances at 80% for 30K. The MSE calculator gives them at 90% (for 25K). Don't know how reliable those are.

I have to put down "tenant" in the application, because that is what I am in the UK. But if I do that, from the lender's perspective I own no property. For them this begs the question - why do I need a home improvement loan. A slight logical glitch in the system there. Any ideas how to overcome that?

jonesMUFCforever · 7 May 2018 at 10:35PM

qvorum wrote: »

Hey guys,

Thanks for the feedback. That chance calculator was useful. So is knowing that the 972 is a rather useless metric. Sneaky credit agencies!

I will settle for less than 30K, if I have to. Truth be told, Experian gives my chances at 80% for 30K. The MSE calculator gives them at 90% (for 25K). Don't know how reliable those are.

I have to put down "tenant" in the application, because that is what I am in the UK. But if I do that, from the lender's perspective I own no property. For them this begs the question - why do I need a home improvement loan. A slight logical glitch in the system there. Any ideas how to overcome that?

You lie - you then go to jail for fraud - your choice.

ViolaLass · 7 May 2018 at 10:58PM

jonesMUFCforever wrote: »

You lie - you then go to jail for fraud - your choice.

That's a bit unnecessary. It was a valid question.

How do I improve that home?

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