Advice on loans please

[Beccarollover]

I would like to take out a loan to pay off 2 credit cards as they are the only debt I have and just want to get rid of them, have 1 payment and pay it off.

It is for £7000

Ive been looking at cahoot, marbles etc but does anyone know who is more likely to accept me as I will be applying for new mortgage soon and really dont want a refusal on my file but would like this debt consolidated?

I dont have poor credit but my personal income has come down in the last year or so considerably.

Thankyou Muchly

Hi BR,
I have not got a loan personally but my mum applied for a loan with cahoot and they are very good as they have a low interest rate. Try and work out how much you can afford to pay per month and then on the cahoot website there is a calculater saying how much they will expect you to pay to borrow £7000. My mum borrowed £5000 and i think she pays about £172.00 per month. She wanted to do the same as you and put all her srore cards etc into one bill and pay it off. It has actually worked as she pays less on that one payment than what she was paying seperatly.
You wont be declined if you have good credit and also if you have a reasonable income which shows you can afford to pay it each month.
You can apply online and they give you any answer straight away!
I hope this helps a bit and goodluck!

Im concerned about having an application on my file when I will be getting a bigger mortgage soon - the mortgage will be in joint names and DP's income is way bigger than mine.

Why not add it on to the mortgage. We are in the process of appplying to do this. It will cut our payments by 2/3rds although spread over the mortgage life. You can pay back sooner if you wish.

I wouldn't worry about 1 or 2 applications on your file becca - I doubt a mortgage lender will be bothered. 100s of applications might affect their decision, a couple almost certainly won't. Some may accept you, some may decline but they almost certainly won't reveal their reasons. They all have different criteria and different systems so I doubt anyone will be able to answer this really. If I were you I'd look for the best deal in terms of interest rates etc, apply and take it if you're offered. If they decline it doesn't necessarily mean the next company you apply to will. And the refusal won't necessarily be on your file (I assume you mean with the main credit agencies?) although their search will. HTH.

Oh and adding it onto your mortgage probably won't be as cheap as other borrowing - bear in mind it'll mean you're taking 20+ years (or whatever the term of your mortgage is) to repay the debt. Which almost certainly isn't going to be worth it for 7k

I wonder if I should just go for it with one company and if I get declined leave it until after the mortgage is arranged?

WWW is quite right. For us we need to cut down our outgoings for a few months so will work well for us but long term we will aim to pay back quicker.
I think you have to have several searches for it to look not good and if you have good credit it and are not refused then it shouldnt matter anyway.

becca, I don't know about the credit rating stuff, but have a look here for loans - cheapest are at 5.9%. That table is for £7000 over 4 years (£164); this one is for 3 years (£212); this one is over 5 years (£135). The table shows total interest repaid as well. (Direct Line do 6.2%.)

Money supermarket is a great site!

BR you would have to disclose the loan when you apply for the mortgage anyway, so applying for it now isn't going to harm your mortgage application. Also it is sensible money management to get rid of CC debt, which in the long run will pit you in a better position to pay the mortgage. There is no reason to turn you down for a loan, provided you haven't got a bad credit history. Even if your income has dropped. To give you an indication how easy it was for me, I applied for a capital one CC, and instantly got £10K - this is more than 1/3 of my total annual income! If I apply for another card with someone else, I am likely to get the same! I have 3 CC and if I wanted I could now borrow about 55% of my total annual income, without a problem I won't but that is another story and I am v good at money management, hence I have 3 empty cards

I think the criteria for lending on a secured loan (mortgage)may be slightly different to unsecured lending (loan). I can't see how a £7k loan would affect your mortgage application any more than £7k in credit card debts. Try looking for a back-loading interest loan so if you are able to reduce the amount you won't be penalised. Egg are very good as are cahoot, and look for daily interest.