Options for a loan

LegacyUser

Bit embarrasing asking for money advice but...

My girlfriend wants a loan to travel around europe and pay private college fees. Lets say 10k. She own's a one bedroom apartment purchased at 350K four years ago.

She has no job and no savings.
She thinks that we can get a loan using her apartment as collateral then sell the apartment and repay the loan with the money.

This is absurd isn't it?
Surely theres a better option.

Any advice would be great.

seamus

Her apartment is in negative equity, she will not be able to secure a personal loan against it. Though this depends. If she paid 350k for it but only has a mortgage of 100k, then she may not be in negative equity.

Most loans are ones that you take out now and begin paying back fairly immediately. Unless you're very friendly with a bank manager, you'll be unable to get a loan that you take out now and pay back as a lump sum in five years' time.

Your only possible avenue is a student loan (each), but this usually requires a guarantor in the form of a parent.

Esoteric_

AS was already said, her property is in negative equity so she won't get a loan secured against that.

As for getting a loan on other terms, I know from trying to get a loan from AIB that having no job and no savings will guarantee no loan. I'm working full time and earning not too bad money but still can't get a loan of 2,000 for medical bills from them because I don't make enough even with a full time job. It's almost impossible that she'd get one.

tinkerbell

There's no way in hell that a bank manager would give her a loan, she is seriously deluded. And her apartment cannot be used as collateral - the sale of it won't even cover the mortgage presumably nevermind pay back the loan.

Deepwell

Another obvious problem is how will the existing mortage of 350K be paid if not working ?

Sleepy

The OP didn't actually mention if there was a mortgage out on the apartment.

If not, I'd say most Bank Managers would consider her a good bet for a student loan. The apartments probably only worth about 100k now but that's still considerably more than the 10k she's looking for. I'd advice putting the amount for the travel down as living expenses for her time in college rather than admitting it's to pay for a holiday though OP.

mailforkev

No-money-No-funny wrote: »

My girlfriend wants a loan to travel around europe...

She has no job and no savings.

I don't want to be harsh here but what planet is she living on. You can't go on holidays if you don't have any money, a holiday is not an entitlement. Have people learned nothing from the last couple of years?

Her time would be put to much better use trying harder to find a job.

LegacyUser

No-money-No-funny wrote: »

She thinks that we can get a loan using her apartment as collateral then sell the apartment and repay the loan with the money.

Leaving aside the business of using it as collateral for a second - surely if she is in a position where this is feasible (no NE, etc), she could just cut out the middleman, sell the apartment now and travel using the proceeds?

johnboysligo

No-money-No-funny wrote: »

She has no job and no savings.

= no loan

banks are only interested in giving money to those who can and will pay it back, regardless of her apartment if she cant make regular repayments the bank will tell her a big fat NO

Milk & Honey

The sensible thing to do is sell the apartment before going away. Any money realised will be available as savings. If she keeps the apartment, by the time she gets back there would be interest on the loan plus accumulated service charges.

dan_d

No job and no savings - she won't get a loan.

And that's before you take the apartment and the NE into account.

Just - no. I wonder about people sometimes....