Prestige finance

Gareth43 · 4 December 2017 at 10:52AM

Hello
I'm in the process of taking out a second charge secured loan with prestige finance for home improvements, I'm ok with the initial interest rate which is fixed for 5 years but after that it becomes variable and I am concerned they will be able to change it whenever they want. I plan on changing my current mortgage in 5 years when my partner goes back to work full time as we will then be able to afford to remortgage for the cost of our current balance and the £65,000 I am borrowing from prestige finance, this way I don't have the loan for 25 years with prestige and I am not at the mercy of their interest rates. I have bad credit so not a lot of options available to me. Any advice?

poppasmurf_bewdley · 4 December 2017 at 11:00AM

Before anyone can give you any advice, why are you needing a £65K loan at a probably very high rate, especially as you have admitted to having a trashed credit file?

Herzlos · 4 December 2017 at 11:27AM

£65k is a hell of a lot for home improvements. Do you really need to do it now and not in 5 years?

Presumably this in an extension due to having a baby or something?

Gareth43 · 4 December 2017 at 12:52PM

Replay to both the loan is high yes but I am consolidating 15k in debt ( car finance and a old loan) both frees up £600pm, the remainder of the loan is for major works to my house, re-pointing, sort the roof out and some other work unfortunately all the bits that need doing are costly big jobs and delaying now will only cost more in putting right at a later stage.

PeacefulWaters · 4 December 2017 at 1:21PM

You have five years to get a grip on your credit file.

Use the £600 "freed up" to reduce debt.

fwor · 4 December 2017 at 1:25PM

Gareth43 wrote: »

I am consolidating 15k in debt ( car finance and a old loan)

You would be converting what are probably unsecured debts into part of a big debt secured on your house. This is not generally considered to be a good idea, because if something goes wrong (redundancy for example) you will probably lose the house.

In your situation, I would borrow a smaller amount to do the time-critical things (roof and, possibly repointing, though often the latter is more cosmetic than structural) and do the rest in stages as you can afford them. Doing it all in a big lump now will be very expensive if all you can get are high rate loans.

iolanthe07 · 4 December 2017 at 3:50PM

Variable interest rates always seem to vary only one way - up.

Prestige finance

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