Bank loan for Property repairs and Overdraft repayment?

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konn1ch1ha
konn1ch1ha Posts: 239 Forumite
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in Loans
Hi all,

I'm looking to get a bank loan to pay for my share of building repairs on my property (share ownership), just north of £2k. On top of that, as I've been in my overdraft (£2,750) for some time, I'd like to get out of that.

Would it be wise to borrow around £5k to consolidate all of this and pay it off on a seven year repayment plan to keep the monthly outgoings down? Or just borrow the necessary amount on the repairs only? I'm looking maybe to redecorate my studio flat to gain more rental income (new kitchen, carpet etc etc.).

Please, no sanctimonious responses. I appreciate helpful contributions.

Thanks.
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  • Candyapple
    Candyapple Posts: 3,384 Forumite
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    Loan eligibility checker:
    https://www.moneysavingexpert.com/eligibility/loans-calculator/

    Money transfer card eligibility:
    https://creditcards.moneysavingexpert.com/?money-transfers
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    Have you not sorted this out yet? I don't know what advice you could possibly still need.

    http://forums.moneysavingexpert.com/showthread.php?t=5597394

    http://forums.moneysavingexpert.com/showthread.php?t=5598072

    http://forums.moneysavingexpert.com/showthread.php?t=5514542

    http://forums.moneysavingexpert.com/showthread.php?t=5497480

    http://forums.moneysavingexpert.com/showthread.php?t=5477826

    http://forums.moneysavingexpert.com/showthread.php?t=5477858
  • Candyapple
    Candyapple Posts: 3,384 Forumite
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    Thanks Pixie, wow I remember this one.
    konn1ch1ha wrote: »
    You make a valid point but living in Brighton is just not feasible. I don't only teach, I play gigs, rehearse - all in the London area. It's just a very bad time financially for me at the moment and it will get better come the following months because that's when I have much more work booked in.

    Four months after you posted the above - did your work pick up then?
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
  • konn1ch1ha
    konn1ch1ha Posts: 239 Forumite
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    Candyapple wrote: »
    Thanks Pixie, wow I remember this one.



    Four months after you posted the above - did your work pick up then?

    Why do people on here find it entertaining to patronise someone asking for advice? Yes, work did pick up - albeit, I still need a loan, and whether it's worth getting a loan to eliminate my overdraft.

    Thanks for the links earlier.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    Have you found a lender that's a) willing to lend you money and b) lend you money at a half decent rate? If the answers to a and b are both no, you're question about consolidating is moot. Although your question about consolidation has already been answered in a previous thread. Just like you've already been given the links that Candyapple has posted.
  • konn1ch1ha
    konn1ch1ha Posts: 239 Forumite
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    Pixie5740 wrote: »
    Have you found a lender that's a) willing to lend you money and b) lend you money at a half decent rate? If the answers to a and b are both no, you're question about consolidating is moot. Although your question about consolidation has already been answered in a previous thread. Just like you've already been given the links that Candyapple has posted.

    a) Yes

    b) No (Lloyds is 21% approx APR) if I borrow the above mentioned. If I borrow the £2K for the repairs, then it's a less harsh repayment, obviously. This is why I'm asking if it's worth borrowing enough to get out of the overdraft and/or have enough for further home improvements.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
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    edited 9 June 2017 at 12:52PM
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    How much is your overdraft costing you?

    Edit: Just borrowing £2k over 84 months at a rate of 21% APR means you will end up repaying £3,832.45
  • konn1ch1ha
    konn1ch1ha Posts: 239 Forumite
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    Pixie5740 wrote: »
    How much is your overdraft costing you?

    Edit: Just borrowing £2k over 84 months at a rate of 21% APR means you will end up repaying £3,832.45

    It depends how much I'm in the overdraft - maxed out it's about £50pm (od usage is £6pm + whatever interest/how deep I am in it).
  • Candyapple
    Candyapple Posts: 3,384 Forumite
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    Pixie5740 wrote: »
    How much is your overdraft costing you?

    Edit: Just borrowing £2k over 84 months at a rate of 21% APR means you will end up repaying £3,832.45

    Madness!!

    OP if you are only looking to borrow £2k, what did the eligibility checker say your chances were for any money transfer cards?

    Would it not be easier to tackle your overdraft by organising a budget and sticking to it, that way every month any excess funds left over are to remain in your bank account to help clear your overdraft?

    Repaying a loan of £2k over 7 years is crazy, especially at those rates.

    Edit: Have you tried applying for the Nationwide account with 0% overdraft?
    http://www.moneysavingexpert.com/banking/compare-best-bank-accounts#overdrawn
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
  • konn1ch1ha
    konn1ch1ha Posts: 239 Forumite
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    Candyapple wrote: »
    Madness!!

    OP if you are only looking to borrow £2k, what did the eligibility checker say your chances were for any money transfer cards?

    Would it not be easier to tackle your overdraft by organising a budget and sticking to it, that way every month any excess funds left over are to remain in your bank account to help clear your overdraft?

    Repaying a loan of £2k over 7 years is crazy, especially at those rates.

    Edit: Have you tried applying for the Nationwide account with 0% overdraft?
    http://www.moneysavingexpert.com/banking/compare-best-bank-accounts#overdrawn

    It's a good plan making a budget, which I intend on doing. But it does boil down to a £2k bill I have to make for repairs on my property, which I'm trying to find the best deal. Everything else is luxury and not necessary.
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