How are people for money advice.

 

Here is my predicament.

 

As many people know I am stull at home and just finished uni. I am currently looking for a full time job because I would like to move out by this time next year.

 

I love my Z as people who know me know bit it has a few problems which I am sorting out. It basically needs an engine rebuild which I amd my dad are going to do. But to do this I will need to take out a loan for about £5000. With this I will pay off my Credit Card and a small loan I took out about 5 months ago and with the rest rebuild my engine. I am doing it my self so I will only need parts.

 

Will people know if this loan will effect my ability to get a mortgage later on? Any one with experience.

 

Stuart

It'll only affect a future mortgage adversely if you default a few payments.

 

In fact obtaining some from of credit is actually beneficial (as long as you make the repayments ;) ) as it gives your history a "good reference" which is seen as better than no references by lenders referring to your credit history.

 

You do have to declare loans when applying for a mortgage, and it does affect the max loan you can take out with some providers but not all. Worst case would be monthly loan repayment x 12 comes off your gross salary figure.

 

Pete

why dont you keep swaping the 5k

from interest free credit card to interst free credit card

cheapest way to owe money

but still give you a credit score

 

steve

Thanks,

 

What I am bothered about is when going for a mortage only being offered a smaller one because £100 a month is coming out for this loan even though it will only have 3 years left.

dont think it will make a difference

if you can afford it you can afford it

if it does make a difference dont tell them

 

steve

get a mortgage now & stick the £5k on the mortgage :D

Originally posted by pete shrimp

It'll only affect a future mortgage adversely if you default a few payments.

 

In fact obtaining some from of credit is actually beneficial (as long as you make the repayments ;) ) as it gives your history a "good reference" which is seen as better than no references by lenders referring to your credit history.

 

You do have to declare loans when applying for a mortgage, and it does affect the max loan you can take out with some providers but not all. Worst case would be monthly loan repayment x 12 comes off your gross salary figure.

 

Pete

 

That's good advice Shrimpy.

 

I got a mortgage when i had a loan still outstanding after paying my uni debts (beer and more beer), i never declared the loan but they do know by doing a credit check that you have one, as long as you don't default on any payments as pete said it will be fine.

 

Hope this helps.

 

Rich:D

Originally posted by stevo

why dont you keep swaping the 5k

from interest free credit card to interst free credit card

cheapest way to owe money

but still give you a credit score

 

steve

 

Its the temptation. First I dont have £5000 credit limit, and there are virtually no places which offer you interest free on balance transfers any more.

 

Plus there is always the temptation of spending more on the CC.

Originally posted by Paul C

get a mortgage now & stick the £5k on the mortgage :D

 

My sister has just done that. Over mortgaged to pay off loans. They offered it her.

Speak to a financial advisor about it, find one in the yellow pages and they usually give good advice and you dont pay them, the loan / mortgage company pays them a fee when you take out the loan.

 

Also i wouldnt worry about your loan restricting your mortgage, most high street banks etc will lend you practically anything at the moment to keep the loaning business ticking along nicely, one of my customers just borrowed about 300k mortgage but couldnt prove his income so all he had to do was present a letter to say he would make the payments :eek: scary and that was a high street bank.

 

The best advice i could give is to shop around, money is still very cheap to borrow at the moment

 

Kirbz

I looked on the internet for a few places.

 

Tesco was the best.

 

I wanted a £4000 loan over 4 years and it was 12.5% which was about £107 a month. I tried a few different amounts to see when the interest went down. For a £5000 loan the interest was 6.4% and cost £117 a month for 4 years. Can you work it out. So its working out to be good value. At the moment I am paying off £60 a month for a small loan I have and £100 a month getting no where paying off my credit card. So really it will save me money in the short term.

 

Stuart