[mew_156]

This isn't as stupid as the title sounds.

Me and my partner are wanting to take out a personal loan for the purchase of a car: a car would be very beneficial as we have a child and i am due to start my PGCE in September, so may need to travel some distance to a placement. I deally we want to buy a car in September at the commencement of the PGCE. Because I don't receive my bursary all in one (paid monthly), I would need a loan to buy the car.

Because I am doing a shortage subject (MFL) and I have a 2:1 degree, I will receive a £15000 grant. I will also receive full maintenence loan and grant plus parent's support allowance so will get roughly aroung £9000 for the year.

We also get roughly £2545 in CTC and £900 in Child Benefit. My partner's income is roughly £3400 a year (he is an undergrad student).

This equates roughly to £27000 for the year all in all. I am wanting to take out around £8000 over 2 years, paying around £360 pm. On £27000, this is easily accomplished.

However, my bank will only take into consideration our INCOME. They do not take student loans or bursaries into account. So in their eyes, we only have an income of around £6900. this means they will not let us take out a loan as we must have a minimum annual income of £10000.



My question is: Does anyone know a way I can get round this? Would any other bank or company be willing to accept my student loan and/or bursary as a source of income? Is there any way I would be able to persuade by showing documents that prove what money I will be receiving? Even if just my student loan were considered, it would be enough. As I said, we will have more than enough to repay the loan plus interest.

Advice would be greatly appreciated as I don't know much about finance. My credit rating is good (I have a credit card with all payments up to date) so that wouldn't be a problem.


Please don't reply with any comments you know will be completely unhelpful. I'm not asking for any judgemental opinion, just some advice based on people's knowledge and experience. Thank you.

[markread45]

I loan you the money but want 200% back after 1 yearso £8000 next year 16000 ?

[smd4std]

yeah just walk into the bank with a gun

[tsnake23]

Defenetly not.

Not even dodgy short term loan companies lend money to the unemployed or students without a job.

Go and buy a cheap second hand car instead.

[mew_156]

(Original post by markread45)
I loan you the money but want 200% back after 1 yearso £8000 next year 16000 ?

Thanks idiot, but I think you mean 100%apr.

This was posted from The Student Room's Android App on my GT-S5830

[Genocidal]

(Original post by tsnake23)
Defenetly not.

Not even dodgy short term loan companies lend money to the unemployed or students without a job.

Go and buy a cheap second hand car instead.

That's completely false. Logbook loans companies regularly provide loans due to the fact they are secured against a car, so all they do if the individual doesn't pay is take the car. Granted, it's not relevant to the OP, but it does happen.

As for the bank, absolutely not. The only way you could conceivably get a loan from anyone is if you secured it against property. But even then it's unlikely as taking that property in the event of a default would cause a lot of hassle for them.

[flown_muse]

Would it be feasible for you to get a cheap car at around £1000 and save the 8 grand car for a wee bit down the line?

[matthewsb]

This would be a bit difficult unless you know someone in the bank very closely and who is at a higher position.

[Kater Murr]

Hmm, I dunno much about these things but Wonga could be a good bet? Not sure what the interest rates are like - it's worth looking into, though.

[paladimathoz]

Try an education loan, Barclays and the co op, provide them its course length deal, intrest free for 1 year plus first month paid for you. You can use it for anything as long as you prove your in education. Taking a loan out for a car is pretty bad though.

[cl_steele]

might work might not but try opening another account at a different account and have your grants etc. [the ones your current bank account doesnt regard as actual income] paid into that one then transfer them over, it usually pops up on their system as a form of income ... or at least it did with mine

[michael321]

You could try getting finance direct from the dealership?

Wonga is most definitely a bad idea.

[Robertall]

My advise is buy a cheaper 2nd hand car. I recommend buying something around the £1000-£2000 mark.

I have got myself a 2nd hand car, it is mine, i owe no debt on it, and will keep going for years. From experience, i avoid cars under £500. These are normally bangers which go wrong.

[bellazz]

it depends entirely on how u negotiate with the bank. bank main source of income is interest income and they'd like to give out loan to anybody who can repay it with interest. if u can prove the certainty and persistence of the other income which u hope to recieve then green signal is for ya.

Hope it helps!