Help for my Mother in Law please

[daddyphilboy]

Hi,

Hope I am in the right place with this,

My Mum in law doesn't really have much debt etc but has had credit in the past and always pays household bills on time and basically has a very good credit rating. She is recently widowed and gets around £1000 per month income from pensions.

She has asked me for advice about getting a loan to sort out her home ( she shouldn't ask me for advice, my credit rating is terrible) So I was hoping you guys could help.

She has banked with Natwest for donkey's years and even has a £3,500 overdraft which she never touches but she is afraid to apply for a loan in case they refuse her saying she can't afford the repayments. I said just apply and see what happens but she won't, she wants to know if they would say no BEFORE she applies (yes crazy I know)

So, She wants just over £9,000 for 5 years. The website quotes £197 per month and as I said, credit rating is very good so what do you think they will say? Will they accept her or turn her down?

Somebody give me some advice please as she is driving me nuts. She is 64 by the way. Cheers.

[BankFodder]

This looks much better and much much cheaper.

 

http://uk.zopa.com/

 

If people know any downsides to this kind of borrowing, maybe they can let us know.

 

Here are some articles

http://www.bbc.co.uk/news/business-18370777

 

http://www.bbc.co.uk/news/business-17400491

[silverfox1961]

I was listening to an article on Radio 4 the other day about Zopa and they were saying they had a default rate of 0.5% which is extremely low.

 

The downside is that the lenders are not covered by the banks compensation scheme which is probably why they split the loans between many private lenders

[daddyphilboy]

Hi thanks for the replies and we have had a look at Zopa but she wasn't too keen.

Anyway, she has applied today online with Natwest and it said she had been approved and once she signed the agreement online it says the money will be in her account the next working day.

She wants to get the ball rolling with the home improvements but is still a bit unsure as to whether they may do final checks etc and change their minds. Does anyone know if this does happen with Natwest or has it happened to you?

She just doesn't want to book appointments and then get a call on Monday saying sorry, NO or do you think she has got it and can get on with things now?

[freakyleaky]

She should wait until the money is im her account before booking appointments.

Given her history as you've described it I would have thought she would be a low risk and have no trouble borrowing money.

 

Tell her to remember the 2 golden rules re the house improvements.

1. Get at least 3 quotes (preferably from recommended tradesmen).

2. NEVER Pay up front for work.

 

[daddyphilboy]

Yes, good advice thanks,

Well.....she just rang me and said she logged into her account and there is a new account showing (obviously the loan account) It says -9000 and available zero. She clicked on it and it says paid out 15th June but there is nothing been paid into her bank account so now she is panicking. She can't ring them up because she has forgotten the pin for telephone banking and when she tried before they said she had given wrong one and wouldn't speak to her.

Any ideas on this please guys??