loan question

[gaspanic]

ok so say i take a loan out for £3000 or whatever and its secured on my flat, but I lose my job lets say 1 month into the loan can I repay the loan amount (monthly) using the loan money??
because getting another job isn't easy, can I use the money they gave me on the basis I havent spent it all on car/home improvements/holiday etc...?

[bednobs]

yes, but the money will run out before the loan does

[gaspanic]

what money? the loan money they gave me? do you mean I will run out of cash before I have completed the payments?

[bednobs]

errrr yes

[factor-fiction]

Yes, I think that's what bednobs means. The loan may be for £3000 but you will have to pay back more- perhaps £4000 or so, depending on the interest rate and loan period, Also if you lose your income bednobs may be thinking you may need some of the loan money to help pay your living costs.

[ladybird49]

Dont forget the interest .........

[bednobs]

i wasn't even factoring in the living costs factor, just that you can't borrow money for free

[boxtops]

Even if you haven't spent any of the loan money, the amount you have to give back to them will be considerably more than you originally borrowed, if you take interest into account (which will be added each month).
It might be too late now but it might have been better to take a further advance on your mortgage if you have one, particularly if you have redundancy insurance on the mortgage payments. The interest rate is usually a lot less doing it that way.

[factor-fiction]

If there's a fair chance that you may lose your job then maybe the loan isn'ta good idea at teh moment. And if you are taking out the loan for a purpose- eg a home improvement/holiday, what happens if you lose the job a month after you've paid out for your holiday- you won't then have the cash to hand

[thebarron]

if you want a loan have a look at zopa

[gaspanic]

thanks for all the replies the loan is purely for living costs in general so if i lose my job i will use the money to live of until i find another,

thanks all replies

[ummmm]

So what are you going to do when you've used all the money? How are you going to repay it if you can't live on what you have now?

[boxtops]

Sadly... as it's a charge on your flat, you run the risk of being made to sell your flat so you can repay the money.

[Postdog]

As someone who did lose their job, stay away from borrowing unless you REALLY need to,

[factor-fiction]

Are you still planning to go to Florida this month?
http://www.theanswerb...l/Question931448.html
That would take up most of a £3000 loan.

[factor-fiction]

Sorry gaspanic, I think your question has been answered and we're now straying into well-meaning advice but that maybe not what you're looking for

[Postdog]

"I'll live of the loan till I find another job"

Medically retired, so got a fair sum to tide me over but here I am a year later with only a bit left and still no job. Things don't always work out.