Reply to: Personal Loans etc as a contractor - hassle getting them?

[psychocandy]

Officially given up on the loan idea. No chance or so it seems......

[psychocandy]

I always thought that big fees charged when getting a secured loan? A small loan amount might not make it worthwhile.

No fees would have been involved apparently.

[kingcook]

Loan is next option mate. I was hoping to bung it on my mortgage at cheap rate then pay it off in a few years when I'm flush.

Loan is obviously going to be a little bit of a higher rate and shorter term.

Wonder if loan borrowers will have the same attitude though? inc zopa.

Guess its one of the drawbacks of being a contractor....

I always thought that big fees charged when getting a secured loan? A small loan amount might not make it worthwhile.

[psychocandy]

Did you try Zopa like I suggested on page 1?

Loan is next option mate. I was hoping to bung it on my mortgage at cheap rate then pay it off in a few years when I'm flush.

Loan is obviously going to be a little bit of a higher rate and shorter term.

Wonder if loan borrowers will have the same attitude though? inc zopa.

Guess its one of the drawbacks of being a contractor....

[jmo21]

Did you try Zopa like I suggested on page 1?

[psychocandy]

Oh well, no joy with RBS getting an extra £10K. Even though, there's £100K+ equity on the property, they still want minimum 2 years accounts.

I guess if I was a permie who'd been working for 6 months earning £30K a year they wouldnt mind. Even though I could be made redundant with zero comeback/payment/anything at a moments notice.

Very short-sighted. After all, loan is secured against the home. If I dont pay, they aint exactly going to lose out if they have to repossess are they?

Been back on the phone to them because I forgot that the Mrs is proper employed and not a scummer contractor like me.

Only problem is she only earns about £18K part-time, and they're still insisting that my income has got to be listed as zero. Apparently, if I was claiming JSA they'd take that into account as income but contract income no way.....

But, computer says 'additional borrowing allowed = ZERO!' still!

Must admit I dont understand the way they look at it. Current outstanding mortgage = £125K, never ever had any problems paying it. Value of house = £240K. Additional borrowing = £7.5K.
Doesnt take much to work out that I aint much of a risk does it?

Weird thing is I went on a contractor mortgage site and, apparently, based on my rate I could borrow something nuts like almost £500K for a mortgage! One place says yes to £500K, another says no to £7.5 = something wrong.

And we wonder why the banking system in the UK is such a state....

[psychocandy]

The problem is he will.

{{yawn}}

[SueEllen]

When you need help filling in the loan paperwork be sure to give us a shout!

The problem is he will.

[northernladuk]

When you need help filling in the loan paperwork be sure to give us a shout!

[TheFaQQer]

True. But (2) is reliant on the fact of me getting the loan in the first place (as I've found out it ain't straightforward if you're a contractor).

If I go for (3), probably not best time to find out you cant get the loan when you realise you really need it.

If you go for (3) then you have at least four months to find (a) a loan; (b) a contract; (c) benefits; (d) another job.

[psychocandy]

3. take the money out of warchest, leaving, say, 4 months money in there. Contract gets canned. Bugger. Wish I had that £7500 available now, but I'll either (a) find another contract soon; or (b) take out a loan now.

True. But (2) is reliant on the fact of me getting the loan in the first place (as I've found out it ain't straightforward if you're a contractor).

If I go for (3), probably not best time to find out you cant get the loan when you realise you really need it.

[TheFaQQer]

Look at 2 scenarios,

1. I take the money out of warchest, leaving, say, 4 months money in there. Contract gets canned. Bugger. Wish I had that £7500 available now.

2. I leave it in there. Get a loan which costs me £15 net in interest a month. Got 8 months warchest now. Contract gets canned. Yes, I'm paying out a little more each month but its still going to last longer.

3. take the money out of warchest, leaving, say, 4 months money in there. Contract gets canned. Bugger. Wish I had that £7500 available now, but I'll either (a) find another contract soon; or (b) take out a loan now.

[psychocandy]

Yep - it is.

I got one a few years back, but only for the purpose of claiming around £50 quidco cashback

I got a payday loan once. It was something like borrow £80 pay back £100 but £50 quidco cashback which is why I did it.

Can see why people get in trouble with this. The buggers constantly hassled me to extend and I get tons of emails offering me payday loans.

[Mister Clark]

Isnt Vanquis the one aimed at people who've got a tulipe history so they can attempt to rebuild their credit rating? Like you said, scandalous interest rates...

Yes it is - or those with a lack of history I would presume. Either would be equally risky I presume.
I see the logic to a certain degree but dont agree with it - its that sort of thinking that's lead to a global recession.

[kingcook]

Isnt Vanquis the one aimed at people who've got a tulipe history so they can attempt to rebuild their credit rating? Like you said, scandalous interest rates...

Yep - it is.

I got one a few years back, but only for the purpose of claiming around £50 quidco cashback