Scoring for unsecured debt
Discussion
Ahoy hoy.
Long story short, we are looking to extend our house. We bought it two years ago for 320,000 (with a mortgage of £235k) and we now have an outstanding balance of £229k against a RICS valuation of £400k. Despite a good increase in my pay since we bought the property, our current lender have calculated we can have a negligable further advance. The mortgage adviser suggested that a change to their lending criteria is probably to blame.
We are two years into a five year fixed, and would rather not pay 3% redemption penalty to go to a lender who will...err...lend.
We are now investigating taking a £25,000 unsecured loan and making up the difference on a 0% credit card. To be honest, I'd rather get on with it and pay it down over 7 years rather than 32 whilst I can afford it.
Whilst being powerfully built, and a director, I don't want to come across as a PH w**nker. However, my gross pay is between £5 and £7k pcm (depending on reasons) and our current mortgage payment is £888.00. We are happy that £500pcm on a loan is manageable, but obviously lenders have the right to feel differently.
Here are my questions, and would appreciate any experiences.
1) Do they take into account "context" of self employment? I am a contractor, so arguably my work is as secure, if not more so, than PAYE.
2) What do they take as evidence of income? Payslips, audited accounts, SA302s? I ask, as if it's the latter I need to request them from HMRC asap.
3) Do larger amounts always get referred to underwriters? I'm fine with this, but I'd rather know so I'm not disappointed when it says pending rather than agreed.
Thanks for your help. I've not really much experience of finance, as we both have cars that are outright owned and only have a credit card each for section 75 cover and credit scoring et al.
Cheers.
Long story short, we are looking to extend our house. We bought it two years ago for 320,000 (with a mortgage of £235k) and we now have an outstanding balance of £229k against a RICS valuation of £400k. Despite a good increase in my pay since we bought the property, our current lender have calculated we can have a negligable further advance. The mortgage adviser suggested that a change to their lending criteria is probably to blame.
We are two years into a five year fixed, and would rather not pay 3% redemption penalty to go to a lender who will...err...lend.
We are now investigating taking a £25,000 unsecured loan and making up the difference on a 0% credit card. To be honest, I'd rather get on with it and pay it down over 7 years rather than 32 whilst I can afford it.
Whilst being powerfully built, and a director, I don't want to come across as a PH w**nker. However, my gross pay is between £5 and £7k pcm (depending on reasons) and our current mortgage payment is £888.00. We are happy that £500pcm on a loan is manageable, but obviously lenders have the right to feel differently.
Here are my questions, and would appreciate any experiences.
1) Do they take into account "context" of self employment? I am a contractor, so arguably my work is as secure, if not more so, than PAYE.
2) What do they take as evidence of income? Payslips, audited accounts, SA302s? I ask, as if it's the latter I need to request them from HMRC asap.
3) Do larger amounts always get referred to underwriters? I'm fine with this, but I'd rather know so I'm not disappointed when it says pending rather than agreed.
Thanks for your help. I've not really much experience of finance, as we both have cars that are outright owned and only have a credit card each for section 75 cover and credit scoring et al.
Cheers.
Edited by BorniteIdentity on Sunday 11th June 12:28
If you are talking about a loan then I would have thought so long as your credit score is good and they see you have a good history of repayment you might only have to provide proof of ID.
If its with a more "non high st" lender then they will probably ask for proof of income which in your situation is likely to be SA302 plus probably 3 months bank statements or something like that.
If its with a more "non high st" lender then they will probably ask for proof of income which in your situation is likely to be SA302 plus probably 3 months bank statements or something like that.
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