What do banks consider a large loan?

Candyapple · 6 October 2016 at 1:39PM

essex.cyclist wrote: »

I think I'll apply and see how it goes - thankfully it's not a disaster if I am rejected. Recently re-mortgaged, so credit check won't impact on me, I don't think.

Did you make the full application? Were you declined or approved and at what amount/rate?

essex.cyclist · 6 October 2016 at 1:46PM

Candyapple wrote: »

Did you make the full application? Were you declined or approved and at what amount/rate?

Will let you know next week.

enthusiasticsaver · 6 October 2016 at 5:17PM

Your original question was whether the bank would be more likely to approve £7-£8k rather than £10k and I don't think it would make a difference. They will either consider you credit worthy or overcommitted but a £2k difference is irrelevant and as your family loan won't show up they won't have a full picture anyway. Paying a loan off over 5 years will cost you more in the long run though.

enthusiasticsaver · 6 October 2016 at 5:23PM

You obviously don't like being challenged on this but a large mortgage, £10-£15k unsecured debt plus a family loan in spite of 2 good salaries screams warning signs to me even though you have explained it is for house renovations. What would you do if either of you lost your jobs with that level of debt?

essex.cyclist · 6 October 2016 at 5:32PM

enthusiasticsaver wrote: »

You obviously don't like being challenged on this but a large mortgage, £10-£15k unsecured debt plus a family loan in spite of 2 good salaries screams warning signs to me even though you have explained it is for house renovations. What would you do if either of you lost your jobs with that level of debt?

Thanks for your first answer, which addresses my question.

Regarding this latest post, I could go into details about why this isn't a big concern, but I'd rather.

Suffice to say, there's no chance of me losing my job and it won't be long before I am bringing home a lot more money than I am now.

We have spent the best part of £25k this year on our house. This won't continue and we can live within our means.

However, thanks for your concern. I don't mind being challenged on this but some people on here think they've seen it all and use that to make judgements that they're not in a position to make.

All the best.

takman · 7 October 2016 at 11:16PM

If your on 45k a year plus have a partner who is on a good wage then why didn't you have that 25k in savings to spend on improvements?.
The fact that you have no savings 12k of debt and owe money to your parents shows you have poor money management (no matter how much you deny it). Even if you didn't have any savings if you had planned to spend this money why didn't you put it on 0% credit cards?. You really need to have a good look at your finances because something is definitely wrong!.

essex.cyclist · 10 October 2016 at 9:35AM

takman wrote: »

If your on 45k a year plus have a partner who is on a good wage then why didn't you have that 25k in savings to spend on improvements?.
The fact that you have no savings 12k of debt and owe money to your parents shows you have poor money management (no matter how much you deny it). Even if you didn't have any savings if you had planned to spend this money why didn't you put it on 0% credit cards?. You really need to have a good look at your finances because something is definitely wrong!.

We bought the house 2 years ago with a whopping deposit, so that's where the savings went.

In your opinion I have poor money management - you're entitled to it, but you're basing your opinion on a short period of my life without knowing anything about the years preceding those and my personal circumstance in the coming 5-10 years.

Because of that, I think your comments are ignorant.

Too many people on here seem to want to give their opinion on everything.

I asked clear questions about specific points I was interested in - thanks to those who have actually bothered to answer those questions, rather than ignorantly sit in judgement.

takman · 10 October 2016 at 10:01AM

essex.cyclist wrote: »

We bought the house 2 years ago with a whopping deposit, so that's where the savings went.

In your opinion I have poor money management - you're entitled to it, but you're basing your opinion on a short period of my life without knowing anything about the years preceding those and my personal circumstance in the coming 5-10 years.

Because of that, I think your comments are ignorant.

Too many people on here seem to want to give their opinion on everything.

I asked clear questions about specific points I was interested in - thanks to those who have actually bothered to answer those questions, rather than ignorantly sit in judgement.

Yes but like I said even if you didn't have any savings then even with a small amount of planning you could have applied for a 0% purchase card and wouldn't have to pay any interest on it. So with a small amount of panning it would have been an interest free debt so you wouldn't now have to be looking for a loan.

Also if you bought the house 2 years ago you could have been saving money since then, so where has that money gone?.

You may think I'm ignorant but the facts are you didn't plan for this expense so had no sabings set aside. You then overspent and had to put it on a credit card charging interest. Your now trying to find a loan to pay it off. This shows a lack of of financial planning which is poor money management. You may disagree which is fine but if you just sit there in denial it won't effect me it will only effect you!.

poppasmurf_bewdley · 10 October 2016 at 10:57AM

takman wrote: »

Yes but like I said even if you didn't have any savings then even with a small amount of planning you could have applied for a 0% purchase card and wouldn't have to pay any interest on it. So with a small amount of panning it would have been an interest free debt so you wouldn't now have to be looking for a loan.

Also if you bought the house 2 years ago you could have been saving money since then, so where has that money gone?.

You may think I'm ignorant but the facts are you didn't plan for this expense so had no sabings set aside. You then overspent and had to put it on a credit card charging interest. Your now trying to find a loan to pay it off. This shows a lack of of financial planning which is poor money management. You may disagree which is fine but if you just sit there in denial it won't effect me it will only effect you!.

I think you have just summed up the situation very well. The only person who will be hurt is himself (and his family). But what frightens me even more are the ominous words "without knowing anything about the years preceding those and my personal circumstance in the coming 5-10 years." Who on earth can know what will happen next month or next year let alone in the coming 5-10 years??? David Cameron is still wondering how he got it all so wrong and he thought he had it all sewed up!

essex.cyclist · 10 October 2016 at 12:18PM

takman wrote: »

Yes but like I said even if you didn't have any savings then even with a small amount of planning you could have applied for a 0% purchase card and wouldn't have to pay any interest on it. So with a small amount of panning it would have been an interest free debt so you wouldn't now have to be looking for a loan.

Also if you bought the house 2 years ago you could have been saving money since then, so where has that money gone?.

You may think I'm ignorant but the facts are you didn't plan for this expense so had no sabings set aside. You then overspent and had to put it on a credit card charging interest. Your now trying to find a loan to pay it off. This shows a lack of of financial planning which is poor money management. You may disagree which is fine but if you just sit there in denial it won't effect me it will only effect you!.

1. If you'd bothered reading my posts before jumping to your own conclusion, you'd see that I am getting the loan to pay off a family loan because they need the money, so the 0% option wasn't something I'd overlooked.

2. The last two years have been spending money on the house. That process is now complete. That's why we haven't been saving.

3. My credit cards are mainly 0% and I'm not using the loan to pay them off - I am paying off a family loan and have a plan in place to pay the credit cards off by next summer.

I've not managed my money well this year but that is a short term issue on my part and not part of a wider problem.

The fact you haven't even read my posts shows your ignorance.

My advice to you would be to do that in future and maybe focus on giving advice that people have asked for, not advice that they haven't, based on things you don't know about them.

What do banks consider a large loan?

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free