secured loans with poor credit

angemcl · 20 April 2017 at 9:01PM

Hi all,

I am looking for any advice regarding securing a secured loan with a poor credit history.

Approx 100k equity on my house, 10 yrs left on repayment mortgage. Looking for Approx £20k to consolidate and clear debts into one payment. Halifax current mortgage provider and not being helpful in terms of additional borrowing.

Any advice on lenders that are willing to work with poor credit history. Household annual income £60k. Current mortgage payment 1070per month.

All advice appreciated.

ricky_v · 20 April 2017 at 9:18PM

Have a look around on the Debt-Free Wannabe board and post a statement of affairs (found at http://stoozing.com/calculator/soa.php) on there to get advice on how to cut back expenditure. Consolidation rarely works unless you tackle your expenditure.

With £60k household income, you can easily clear the £20k debt without resorting to secured loans, plus the chances are that it will be against your mortage's T+Cs to put additional charges on the property.

Good Luck!

DCFC79 · 20 April 2017 at 9:38PM

Consolidating just moves it from A to B and may extend the term your lumbered with the loan. Its not a wise move to turn unsecured debt into secured against your home but go ahead if you like.

If you lose your job or something happens meaning your down to 1 income your home will be at risk.

sourcrates · 20 April 2017 at 10:20PM

My advice, don't do it, it's akin to jumping out of the frying pan, into the fire.

Consolidation is rarely a good option, (take it from one who knows from very painful personal experience) secured loans for consolidation are utter madness, never, ever pay off debt with more debt, especially secured debt.

bris · 20 April 2017 at 11:59PM

60k income and 20k debt with a mortgage of just 1k. You don't need a loan you just need to cut back, that debt could be written off in 2 years with that income.

Pay the most to the highest interest first to clear it quicker. Looking for additional borrowing is just keeping within the vicious debt circle.

StopIt · 21 April 2017 at 8:37AM

You're not clearing your debts, you're escalating them.

Never, EVER think that changing unsecured debt to secured debt is a good idea. it's crazy.

Take Halifax being reticent as a blessing and get to the DFW boards ASAP.

MEM62 · 21 April 2017 at 12:19PM

bris wrote: »

60k income and 20k debt with a mortgage of just 1k. You don't need a loan you just need to cut back, that debt could be written off in 2 years with that income.

Pay the most to the highest interest first to clear it quicker. Looking for additional borrowing is just keeping within the vicious debt circle.

+1 on that advice.

You do not need further borrowing you just need to control your spending. Be grateful your lender is reluctant to stick this on your mortgage. You would regret doing so.

System · 21 April 2017 at 4:52PM

So....

Annual income £60,000

Mortgage repayments £12,840

Assume £12,000 a year for living costs in total including food, council tax, gas and electric, water, phone, fuel etc but excluding borrowing. If your outgoings excluding your borrowing and mortgage is higher than that you need to take a long hard look at your lifestyle.

Leaves just over £35,000 a year to repay £20k of debt.

Tell us again why you need to borrow £20k to pay £20k of debt? Just pay off the debts as advised above and be clear in less than a year. It does mean you are going to have to do without some of the utter crap you've been blowing your money on for the last several years but clearly as you couldn't afford to then maybe it may turn out to be a good lesson in living within your means and save you getting back where you are now.

dresdendave · 21 April 2017 at 6:07PM

Tarambor wrote: »

So....

Annual income £60,000

Mortgage repayments £12,840

Assume £12,000 a year for living costs in total including food, council tax, gas and electric, water, phone, fuel etc but excluding borrowing. If your outgoings excluding your borrowing and mortgage is higher than that you need to take a long hard look at your lifestyle.

Leaves just over £35,000 a year to repay £20k of debt.

Tell us again why you need to borrow £20k to pay £20k of debt? Just pay off the debts as advised above and be clear in less than a year. It does mean you are going to have to do without some of the utter crap you've been blowing your money on for the last several years but clearly as you couldn't afford to then maybe it may turn out to be a good lesson in living within your means and save you getting back where you are now.

Although I agree with the gist of your post, I expect £60k is the salarie(s) before income tax and NI so your calculation of £35k disposable income is somewhat inflated.

System · 22 April 2017 at 9:05PM

dresdendave wrote: »

Although I agree with the gist of your post, I expect £60k is the salarie(s) before income tax and NI so your calculation of £35k disposable income is somewhat inflated.

OK....

Annual net income £42597
Mortgage repayments £12840
Living costs £12000

Leaves over £17500 a year to pay a £20k debt.

Why the hell would someone pay 4-5 years more interest on a debt they could clear inside 15 months?

secured loans with poor credit

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