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Turned down for a loan. 2 Queries.

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  • 16-12-2010 6:59pm
    #1
    BnB
    Registered Users Posts: 1,083 ✭✭✭


    My wife is looking for a loan of €15k from the bank. Because she alreday has a loan with the Credit Union, they won't give it to her as they say it is too much unsecured debt. We really need to try and sort this so I am trying to think of everything I can. So 2 queries.

    Does anyone know, specifically with the Bank of Ireland

    1) Can you get someone to sign as a Guarantor for a term loan that size or does that only apply to mortgages.

    2) Can my wife use her car as colateral. Or to put it another way, can she get a car loan, on a car she already owns ? She has a car worth about €15k that doesn't have any finance or anything like that on it.

    Thanks in advance


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    #2
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    She could certainly reapply with a second party or guarantor on the account. This would improve the chances of the loan getting approved as long as the other party has a good credit history.

    Guarantors are taken on any balances if needed, not just mortgages.

    They will not consider securing the loan against an asset she owns. An option may be to sell the car and get a smaller loan for a less expensive car and use the funds from the sale for what she needs the loan for.


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    #3
    BnB
    Registered Users Posts: 1,083 ✭✭✭BnB


    chris85 wrote: »
    She could certainly reapply with a second party or guarantor on the account. This would improve the chances of the loan getting approved as long as the other party has a good credit history.

    Guarantors are taken on any balances if needed, not just mortgages.

    They will not consider securing the loan against an asset she owns. An option may be to sell the car and get a smaller loan for a less expensive car and use the funds from the sale for what she needs the loan for.

    Thanks Chris. Much Apreciated.

    Selling the car - I thought about it myself, but it isn't really a very viable option. It would be a lot of messing with very little gained. The car is worth 15k max. Realistically, 13k. We'd have to spend at least €5k on some kind of replacement as hers is the main family car. (My own car is worth about a grand) Also, we really need to get this loan before Christmas if possible. We've been building a house without any mortgage. This is just the last €15k that we need to pay the last two lads off and we are 100% done and I really want to do it before Christmas to be fair to the lads.

    Getting someone to go guarantor on the loan would be a better option as it would move it along much quicker. Don't get me wrong though, I'm not taking it lightly. I do understand it is a big responsibility to ask someone to do it.

    I had a thread here about 12 months ago about not being able to get a mortgage and asking WTF was I going to do. We moved into a fully finished house last Summer and if we get this 15k, we'll be fully finished paying everyone for it and I'll dig up that thread to update the story.


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    #4
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    BnB wrote: »
    Thanks Chris. Much Apreciated.

    Selling the car - I thought about it myself, but it isn't really a very viable option. It would be a lot of messing with very little gained. The car is worth 15k max. Realistically, 13k. We'd have to spend at least €5k on some kind of replacement as hers is the main family car. (My own car is worth about a grand) Also, we really need to get this loan before Christmas if possible. We've been building a house without any mortgage. This is just the last €15k that we need to pay the last two lads off and we are 100% done and I really want to do it before Christmas to be fair to the lads.

    Getting someone to go guarantor on the loan would be a better option as it would move it along much quicker. Don't get me wrong though, I'm not taking it lightly. I do understand it is a big responsibility to ask someone to do it.

    I had a thread here about 12 months ago about not being able to get a mortgage and asking WTF was I going to do. We moved into a fully finished house last Summer and if we get this 15k, we'll be fully finished paying everyone for it and I'll dig up that thread to update the story.

    Fair play to you and all. Why dont you go as guarantor on it or as a joint party on the account? should beef up the application a bit as long as you dont have a terrible credit rating.


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    #5
    BnB
    Registered Users Posts: 1,083 ✭✭✭BnB


    chris85 wrote: »
    Fair play to you and all. Why dont you go as guarantor on it or as a joint party on the account?.should beef up the application a bit ....

    Good idea
    chris85 wrote: »
    .....as long as you dont have a terrible credit rating

    :eek:

    That's the reason we couldn't get a mortgage. I don't have any judgements or anything like that, but I do have missed payments and stuff in the past that haunts me.

    But, I won't complain. It was all my own fault. And while it has been a very stressful year ( and will continue to be untill we get this last bit sorted), compared to a lot of misfortunate people in the country, we are not in a bad situation.
    • We both have our jobs. My wifes is 200% secure (shes a teacher) and while I do have my own buisness, it's going ok.
    • We are able to pay back all our loans.
    • Our total loans are only about half the value of our house
    • We are living in the house that we want to stay in for the rest of our lives.
    So as I said, it has been stressful, but when I see people losing their homes etc, I'm very very grateful for what we have.


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    #6
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    in fairness that is an awful lot of unsecured debt to be half the value of the house. at the interest rate they are at its very expensive compared to a mortgage, especially since its over such a short time i would be very worried about your ability to repay this. If you say its ok than cool but i can see the banks issue here. You have too much unsecured debt to be repaid over too short a time.

    Good luck with the application and hope it all gets sorted.


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    #7
    LuvTil3
    Closed Accounts Posts: 7 ✭LuvTil3


    BnB wrote: »
    • We both have our jobs. My wifes is 200% secure (shes a teacher) and while I do have my own buisness, it's going ok.
    • We are able to pay back all our loans.
    • Our total loans are only about half the value of our house
    • We are living in the house that we want to stay in for the rest of our lives.
    So as I said, it has been stressful, but when I see people losing their homes etc, I'm very very grateful for what we have.

    It's great to see that you're positive and grateful for what you have, I admire that a lot in people. Also, if you want more info on personal loans you can check out http://www.personalloans.org - it's a very informative site. Hope that helps best wishes to you with everything! :)


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