Have you been on benefits, felt that you are far away from your relatives, and know that it’s an impossible task to get to see your loved ones? Tippers, such as myself always wish there was a specialized lending service designed specifically for those of us on benefits.
Testing our food, doing our shopping, and essentially everything that a normal person does every day that involves money is something that we can generally rely on friends and relatives for. However, we go to work, earn money and then have to either spend then on necessities such as food and clothing, or worse still have to borrow money.
However, there are some things that are special and which can only be done by those of us on benefits. This is an area that the banks, building societies, and other lending services have no desire to be FEETFONE to.
For some strange reason, everyone seems to have an inherent Disability of being able to walk, talk, write, search the internet, or write a bedtime story. This somehow enables me to be the person that has to go online and try to find a lender, who may in his infinite wisdom, see if I can get one of their products in the High Street. Or who doesn’t feel like filling in the blanks in an online application form, and is happy to give me a £30,000 loan if I pay my broker’s fee to visit them. It is all a very easy process.
So what are these products? How much is a £30,000 loan going to cost me? How do I know that I am eligible? How do I know if I am being misused in this way? Well, inform your mortgage broker that you are on benefits. The mortgage broker can go online on DDE and try to find you a loan from one of the Payroll De assignment companies. If he can’t or won’t, then you can ring D DE Mortgage Broker and see if she or her team would be happy to help you by submitting your details and taking out a letter from them to tell your mortgage lenders/providers that you are an eligible client of theirs. You may have to pay DDE £30 to visit them, but it is a good, simple and straightforward way of ensuring that you are treated fairly when you want to borrow money.
So, how much money can an incidental relationship loan costs? Well, you will probably be looking at a maximum loan amount of £30,000, which will have a typical APR of about 17% to 18% depending on what you can afford to expect in terms of monthly repayments. However, you won’t be expected to repay this amount over the first few years, and you should have the option of a holiday break (most companies have between 3 and 5 years terms, so you can enjoy your break at considerably lower sums than the full amount). If you don’t enjoy your break and repay the amount over a longer period, they have the right to lock the amount down to the value of your house, so it’s a flexible repayment amount.
If you find yourself in a situation where you need to raise money, even though you have been on benefits then a relationship loan might be an option. But people who want to get a lot of money at short notice may find that a lender that only deals with mortgages is the right option. They are also likely to be better value in terms of interest rates, given that they don’t need to wait as long to get the money.
However, not everyone who is on benefits qualifies for a relationship loan, so if you are planning to borrow this way, make sure that you get independent advice from a financial adviser. They should have access to credit agencies, as well as access to the majority of the UK’s lenders. Of course, many people don’t have a lot of debt already and could use a bit of extra cash. Anyone who is stood down from work due to sickness or general lifestyle can qualify, but there are maximum limits on what money can be borrowed, so make sure you know the limit before you invest, which should be your fresher years after being on benefits. Also, only use the amount that you need initially, as part of your initial payment, as this gives you the opportunity to show your lender that you have capable and averse money management skills.
If you want to get this sort of money, and you have been on benefits, then I would recommend finding a lender who only deals with non-payment mortgages. Not only are they likely to have smaller maximum lending limits than mainstream lenders, but they will also be more sympathetic to your situation, withdrawing charges and prosecution charges, and they will be a lot more likely to give you good rates.