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  • FIRST POST
    • qvorum
    • By qvorum 6th May 18, 11:45 PM
    • 2Posts
    • 0Thanks
    qvorum
    How do I improve that home?
    • #1
    • 6th May 18, 11:45 PM
    How do I improve that home? 6th May 18 at 11:45 PM
    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
Page 1
    • forgotmyname
    • By forgotmyname 7th May 18, 4:04 AM
    • 27,295 Posts
    • 11,004 Thanks
    forgotmyname
    • #2
    • 7th May 18, 4:04 AM
    • #2
    • 7th May 18, 4:04 AM
    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
    Originally posted by qvorum
    20k debt on a 45k salary?

    Have you bought the property? what is it worth?

    How much do you have saved towards the repairs?
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

    My contribution to MSE. Other contributions will only be used if they cost me nothing.

    Due to me being a tight git.
    • Pixie5740
    • By Pixie5740 7th May 18, 11:00 AM
    • 12,449 Posts
    • 17,692 Thanks
    Pixie5740
    • #3
    • 7th May 18, 11:00 AM
    • #3
    • 7th May 18, 11:00 AM
    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
    • By Herzlos 7th May 18, 12:08 PM
    • 7,554 Posts
    • 6,932 Thanks
    Herzlos
    • #4
    • 7th May 18, 12:08 PM
    • #4
    • 7th May 18, 12:08 PM
    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
    • By Sncjw 7th May 18, 12:59 PM
    • 1,863 Posts
    • 1,100 Thanks
    Sncjw
    • #5
    • 7th May 18, 12:59 PM
    • #5
    • 7th May 18, 12:59 PM
    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
    • By DCFC79 7th May 18, 1:02 PM
    • 32,142 Posts
    • 20,214 Thanks
    DCFC79
    • #6
    • 7th May 18, 1:02 PM
    • #6
    • 7th May 18, 1:02 PM
    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
    • By jonesMUFCforever 7th May 18, 6:07 PM
    • 24,969 Posts
    • 12,191 Thanks
    jonesMUFCforever
    • #7
    • 7th May 18, 6:07 PM
    • #7
    • 7th May 18, 6:07 PM
    ''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.
    What goes around - comes around
    give lots and you will always receive lots
    • enthusiasticsaver
    • By enthusiasticsaver 7th May 18, 9:37 PM
    • 6,733 Posts
    • 14,334 Thanks
    enthusiasticsaver
    • #8
    • 7th May 18, 9:37 PM
    • #8
    • 7th May 18, 9:37 PM
    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.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • qvorum
    • By qvorum 7th May 18, 9:42 PM
    • 2 Posts
    • 0 Thanks
    qvorum
    • #9
    • 7th May 18, 9:42 PM
    • #9
    • 7th May 18, 9:42 PM
    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
    • By jonesMUFCforever 7th May 18, 10:35 PM
    • 24,969 Posts
    • 12,191 Thanks
    jonesMUFCforever
    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?
    Originally posted by qvorum
    You lie - you then go to jail for fraud - your choice.
    What goes around - comes around
    give lots and you will always receive lots
    • ViolaLass
    • By ViolaLass 7th May 18, 10:58 PM
    • 5,403 Posts
    • 7,465 Thanks
    ViolaLass
    You lie - you then go to jail for fraud - your choice.
    Originally posted by jonesMUFCforever
    That's a bit unnecessary. It was a valid question.
    • Candyapple
    • By Candyapple 8th May 18, 12:07 PM
    • 2,936 Posts
    • 2,280 Thanks
    Candyapple
    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?
    Originally posted by qvorum
    You're not a homeowner, the operative word being in the UK.

    If you ticked the box for homeowner loan or home improvements, the banks are not stupid. When they search your credit files they will see you have no mortgage on your files, plus the background checks with National Hunter where they will see that all your previous applications you have applied as a 'tenant' and then you run the risk of the bank declining your application and also referring you for a CIFAS marker for lying on your application. That in itself means 6 years of not being able to get any credit and also any existing bank or credit card accounts can also be closed too if they find out.

    The simple fact is that most homeowner loans are going to be for considerable sums of money so lenders want to know that if the debtor fails to repay, whilst it is an unsecured loan, they have the option to at least put a charging order on the house to recoup their losses.

    If you are only a tenant, it stands to good reason that no tenant would be taking out a loan for thousands to improve a property that isn't theirs and also it makes for riskier lending as the loan is truly unsecured so if you didn't repay, the lender would have a lot less options to recoup any of the debt, let alone its entirety.
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • ViolaLass
    • By ViolaLass 8th May 18, 12:37 PM
    • 5,403 Posts
    • 7,465 Thanks
    ViolaLass
    OP, I'm sorry people aren't answering your question and are instead focusing on telling you off for committing fraud that you have not committed and have not stated you intend to commit. Hopefully someone will come along with a more helpful answer.
    • shortcrust
    • By shortcrust 8th May 18, 3:05 PM
    • 2,029 Posts
    • 3,022 Thanks
    shortcrust
    OP, I'm sorry people aren't answering your question and are instead focusing on telling you off for committing fraud that you have not committed and have not stated you intend to commit. Hopefully someone will come along with a more helpful answer.
    Originally posted by ViolaLass
    Warning someone that a course of action might be seen as fraud is not a bad thing to do.

    Edit to add: This forum would be a less useful, a less informative, and a less interesting place if we were limited to answering OPs' questions.
    Last edited by shortcrust; 08-05-2018 at 3:39 PM.
    • ViolaLass
    • By ViolaLass 8th May 18, 5:23 PM
    • 5,403 Posts
    • 7,465 Thanks
    ViolaLass
    Sure. But telling them off and not answering their questions is hardly welcoming.
    • gycraig
    • By gycraig 8th May 18, 5:34 PM
    • 445 Posts
    • 338 Thanks
    gycraig
    Honest answer is no one is going to give someone a 30k loan with that salary, especially for a house in a completely different country that they could run away to and never come back
    • jonesMUFCforever
    • By jonesMUFCforever 8th May 18, 6:44 PM
    • 24,969 Posts
    • 12,191 Thanks
    jonesMUFCforever
    OP, I'm sorry people aren't answering your question and are instead focusing on telling you off for committing fraud that you have not committed and have not stated you intend to commit. Hopefully someone will come along with a more helpful answer.
    Originally posted by ViolaLass
    Which is what exactly?
    What goes around - comes around
    give lots and you will always receive lots
    • ViolaLass
    • By ViolaLass 8th May 18, 10:10 PM
    • 5,403 Posts
    • 7,465 Thanks
    ViolaLass
    Which is what exactly?
    Originally posted by jonesMUFCforever

    What is the question or what is the answer?

    Latter - no idea, else I would have made a suggestion.

    Former - "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?"

    i.e. how does the OP explain to the bank that they are a tenant here but still want to carry out home improvements? For the lender, that's illogical but in the OP's circumstances, it makes sense.
    • jonesMUFCforever
    • By jonesMUFCforever 8th May 18, 10:57 PM
    • 24,969 Posts
    • 12,191 Thanks
    jonesMUFCforever
    What is the question or what is the answer?

    Latter - no idea, else I would have made a suggestion.

    Former - "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?"

    i.e. how does the OP explain to the bank that they are a tenant here but still want to carry out home improvements? For the lender, that's illogical but in the OP's circumstances, it makes sense.
    Originally posted by ViolaLass
    The OP wants to make home improvements on a property abroad.
    There is no way they will lend for that purpose.
    So you go back to not telling the truth and trying to circumvent the awkward questions.
    What goes around - comes around
    give lots and you will always receive lots
    • Nebulous2
    • By Nebulous2 9th May 18, 3:31 AM
    • 1,919 Posts
    • 1,149 Thanks
    Nebulous2

    i.e. how does the OP explain to the bank that they are a tenant here but still want to carry out home improvements? For the lender, that's illogical but in the OP's circumstances, it makes sense.
    Originally posted by ViolaLass
    Automated systems have their limits. When you hit one of these you need to find a way of getting your question put to a person.

    I'd pick a major bank as a lender and apply in branch. They may well fill out the same questionnaire, but should be able to refer to an underwriter.

    The advice above about not applying with variations on the answer of whether you are a home owner is essential. It could open a whole world of pain.
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