Wrighty
Member
Registered: 28th Feb 04
Location: Howden
User status: Offline
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Im about to take out a loan for a new daily motor but just wondering where would be better to get one from, heres my situation.
my last one was from my bank HSBC, but there is also these guys http://www.zopa.com/ recommended to me as a few people at work who have used to them to borrow and also currently invest here.
Iv got some money coming my way but its taken a bit longer to sort out, so i only need the loan as a sort of stop gap until my cash arrives and il pay off the loan where ever i decide to get it from.
Main question is, do loans show up on your credit file, and if they do would it look better getting one from my bank over zopa, say if i were to get a mortgage from my bank in a few years time?
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Ben G
Member
Registered: 12th Jan 07
Location: Essex
User status: Offline
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As long as the loan was paid off in full then I don't see how it could look bad?
I'm fairly certain having loans/credit cards on your credit file is better than having nothing.
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fred7
Member
Registered: 17th May 04
Location: Rugeley, Staffordshire
User status: Offline
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Any type of credit shows up on your credit. All credit is good as long as its paid back on time with no problems. Defo want some up to date credit on your file for a mortgage because shows u can handle it still. To do with loan go to who ever offers u the most for less. Tesco etc usually good if u have good credit
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Rob_Quads
Member
Registered: 29th Mar 01
Location: southampton
User status: Offline
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You may well find that the best way to do it is a loan over a longer period that has a lower APR but no repayment penalties.
I had one with FirstDirect and as long as I did not clear the loan by payment it was fine. All you have to do was leave £1 left on the loan to be cleared by the next regular payment and it was fine (even though they had lost out on the interest on around 3 years of interest)
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Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
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A loan is only going to hurt you come mortgage time if:
a) you missed a payment
or
b) the monthly repayments are still ongoing, and they feel it leaves you too little cash for your mortgage payments (even if you think you can manage easily).
I'd always prefer to be loan/credit card free when applying for a mortgage - even if I can easily afford repayments plus the new mortgage.
Lotus Elise 111R
Impreza WRX STi
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Toby
Premium Member
Registered: 29th Nov 05
User status: Offline
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As Kyle mentioned your affordability is not the banks affordability.
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ed
Member
Registered: 10th Sep 03
User status: Offline
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Typically the banks will take your outstanding loan balance and deduct it from the amount they will lend you in a mortgage. I've run into this issue with my applications so I'm having to stump up a higher deposit to reduce the monthly payments (despite everything they've quoted me so far being significantly less than what I'm paying in rent  ). I guess they've got to be careful with who they lend to and other people's circumstances may give them different results.
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Wrighty
Member
Registered: 28th Feb 04
Location: Howden
User status: Offline
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no worries i wont have any loans at the same time as a mortage, like i say its gonna be paid off within weeks was just wondering if either would look better or worse. seems it dont really matter!
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deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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If you need the stop gap, what value are we talking? A credit card on 0% may be a better option?!
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