Reply to: max loan term = contract length?

[formant]

I think she meant more to this story about the OP than he is telling us, like the 10K outstanding loan he suddenly drops in to convo half way though etc... Not everything is always the banks fault.

Well, both really.

Having an existing 10k loan and needing more credit despite the income he's quoting is just bound to look a bit ... off.

Also, wouldn't one normally try to borrow more on the existing loan, rather than trying to get a second one with the same lender?

[SandyD]

Rest assured am doing everything legal. Go and find someone else to bully. <mod snip: no need for that I think.>

[northernladuk]

I put down my income (company income) not my salary.

Come on Sandy. I want this know if you are committing fraud or just mixed the terms up..... or just making it up.

[Martin@AS Financial]

You have a couple of options here - educate the bank manager (good luck with that)
or
Go to a specialist advisor. ContractorFinancials and AS Financials (Martin is a fairly helpful chap) are both quite helpful.

Thank you Rasputin Dude - that is very kind of you.

[northernladuk]

Having an unpaid off loan already is likely to give you a poor internal bank score if your income and/or savings aren't enough to cover it and you have other debts.

Really?

[SueEllen]

I think she meant more to this story about the OP than he is telling us, like the 10K outstanding loan he suddenly drops in to convo half way though etc... Not everything is always the banks fault.

Having an unpaid off loan already is likely to give you a poor internal bank score if your income and/or savings aren't enough to cover it and you have other debts.

[northernladuk]

Agreed - more like a poor internal bank score.

Also some banks are only willing to lend amounts under 20k to you when they know that either you can pay it off in full or have a property they can put a charge on if you default.

I think she meant more to this story about the OP than he is telling us, like the 10K outstanding loan he suddenly drops in to convo half way though etc... Not everything is always the banks fault.

[SueEllen]

Cheers.
So yeah, there'll be more to the story as to why they don't want to give him that loan...it won't be about (just) about the contract length.

Agreed - more like a poor internal bank score.

Also some banks are only willing to lend amounts under 20k to you when they know that either you can pay it off in full or have a property they can put a charge on if you default.

[northernladuk]

[northernladuk]

Your company income?? You mean what the client pays you? or company income i.e. total amount you make from company, divs and salary?

Sandy?

Sandyyyyyyyyyyy.....

[SandyD]

I believe the last few years the banks had to abide with so many new regulations - having to be fair to the customer as the FSA puts it, means making 1000% that the customer can afford to pay back etc, obviously the legal and compliance gone overboard, but it all to stop / recover from the credit crunch... I think!

[psychocandy]

Sod the bank, sod buying, just lease something. They don't care if you are ltd co, self employed or whatever. Stop paying and they do a repo on the car anyway.

You can get much more car for the money - as long as you don't mind having to keep paying out and not "owning", which if you are borrowing, you don't own it anyway.

Anything from a Fiesta 1.6TDCi Econetic for around £150/month up to an Audi RS5 for about £1500 a month. (Figures are indicative and not a valid quotation - DYOR). FWIW I got a Nissan Juke 1.6 Accenta Premium, with maintenance for £224/month inc VAT on a 2 year deal. All I have to pay in this time frame is fuel and insurance. Beats the last few cars I've had with blown turbos (£1300), busted valves requiring a head rebuild (£1800), warped discs (£400) etc.

Im thinking of that route now. Can't get loan need new motor. Lease company recommendations?

[psychocandy]

There is absolutely no need to do that if:
1. You have a good credit record, and,
2. You have credit cards, bank accounts and/or a mortgage with other financial institutions.

Generally if you apply on a paper form and have a good credit record and have other financial products using a bit of common sense you can get the loan you want.

(And yes I'm fed up of various financial institutions trying to give me loans and credit cards I don't want even though they fully know what my situation is just because I have another product with them.)

Be careful of too much available credit. I got bitten with that one.

Added up all my credit cards limit and it almost £100K. None of it used. Apparently, this can cause an issue.

[psychocandy]

Getting a loan is a complete pile of tulipe at the moment. Especially as a contractor.

I can't get one at the moment for £12K for some reason. I even tried putting down income as £42K for me and £42K for wife (which it is) and checked my credit record with experian (top banana) and I still get turned down for it. Its all black magic!

Best one was Barclays. Went to see premier manager woman who nearly fell off her chair when I gave her income details - lined me up for premier account etc the full monty. Then I asked for this loan. She blagged it for a few weeks then it was 'computer says no'. OK then thanks but I wont be opening the current account either then.

Completely nuts. £12K which is about 2.5 times what I take out of company and goes into personal account (by way of salary, my div, wife div) on average per month.

[formant]

Fair points well made.

Cheers.
So yeah, there'll be more to the story as to why they don't want to give him that loan...it won't be about (just) about the contract length.