Loan Help
Author
Discussion

LeftMuffin

Original Poster:

971 posts

251 months

Saturday 6th April 2013
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So in my infinety wisdom in my late teens early 20's I managed to accumulate a fair amount of debt with the perils of having a credit card (yes I was stupid).

Anyway I've worked out that I could save myself around £350 a month if I could group everything into 1 loan.

However we bought our house just under 2 years ago and due to the mortgage and card balances, I can't get a loan for love nor money through the normal places. I've worked out that a loan of £18k would pay everything else barring the mortgage off but I keep coming up against 'you don't meet our lending criteria' or 'you don't meet our affordability requirements'.

I've checked my credit score and its pretty much dead in the middle, slightly leaning towards the 'good catergory'.

I'm guessing the reason I can't get a loan is due to the 'unsecured debt' I have being fairly high.

Is there anyway I can get around this or is it just going to be a case of persiver and try again in 6 months time or so?

Cemesis

771 posts

192 months

Saturday 6th April 2013
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What are the details of your outstanding loans? Total amounts, amounts paid each month, interest rates and time left to run.

Sarnie

8,373 posts

239 months

Saturday 6th April 2013
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Whats the annual income Vs amount of loan requested?

Lenders don't usually like to lend more than 75% of your annual pay.

LeftMuffin

Original Poster:

971 posts

251 months

Saturday 6th April 2013
quotequote all
Sarnie said:
Whats the annual income Vs amount of loan requested?

Lenders don't usually like to lend more than 75% of your annual pay.
It's not that high, it's around 60% based on yearly wage.

Sarnie

8,373 posts

239 months

Saturday 6th April 2013
quotequote all
LeftMuffin said:
It's not that high, it's around 60% based on yearly wage.
But then you need to take into account your credit commitments. What most people don't realise is that when you apply for a loan for debt consolidation they will assess the affordability of the loan based on you NOT paying the debts off and using the money for something else, leaving you to repay the loan plus the debts you claimed you were paying off. I would assume the loan plus the annual payments on your credit commitments would take you into the 'unaffordable' category.

Nickyboy

6,825 posts

264 months

Saturday 6th April 2013
quotequote all
I'm in the exact same situation, i've decided i have to live with it for now paying as much as i can off the cards. I managed to get to fixed balances for life on 2 of the cards so once i have paid off the highest interest card i'll be in a much better situation, hopefully by the end of the summer.