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  • FIRST POST
    • konn1ch1ha
    • By konn1ch1ha 9th Jun 17, 10:25 AM
    • 116Posts
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    konn1ch1ha
    Bank loan for Property repairs and Overdraft repayment?
    • #1
    • 9th Jun 17, 10:25 AM
    Bank loan for Property repairs and Overdraft repayment? 9th Jun 17 at 10:25 AM
    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.
Page 1
    • Candyapple
    • By Candyapple 9th Jun 17, 10:51 AM
    • 2,173 Posts
    • 1,672 Thanks
    Candyapple
    • #2
    • 9th Jun 17, 10:51 AM
    • #2
    • 9th Jun 17, 10:51 AM
    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
    • By Pixie5740 9th Jun 17, 11:25 AM
    • 10,626 Posts
    • 14,601 Thanks
    Pixie5740
    • #3
    • 9th Jun 17, 11:25 AM
    • #3
    • 9th Jun 17, 11:25 AM
    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
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • Candyapple
    • By Candyapple 9th Jun 17, 11:36 AM
    • 2,173 Posts
    • 1,672 Thanks
    Candyapple
    • #4
    • 9th Jun 17, 11:36 AM
    • #4
    • 9th Jun 17, 11:36 AM
    Thanks Pixie, wow I remember this one.

    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.
    Originally posted by konn1ch1ha
    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
    • By konn1ch1ha 9th Jun 17, 12:31 PM
    • 116 Posts
    • 6 Thanks
    konn1ch1ha
    • #5
    • 9th Jun 17, 12:31 PM
    • #5
    • 9th Jun 17, 12:31 PM
    Thanks Pixie, wow I remember this one.



    Four months after you posted the above - did your work pick up then?
    Originally posted by Candyapple
    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
    • By Pixie5740 9th Jun 17, 12:39 PM
    • 10,626 Posts
    • 14,601 Thanks
    Pixie5740
    • #6
    • 9th Jun 17, 12:39 PM
    • #6
    • 9th Jun 17, 12:39 PM
    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.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • konn1ch1ha
    • By konn1ch1ha 9th Jun 17, 12:45 PM
    • 116 Posts
    • 6 Thanks
    konn1ch1ha
    • #7
    • 9th Jun 17, 12:45 PM
    • #7
    • 9th Jun 17, 12:45 PM
    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.
    Originally posted by Pixie5740
    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
    • By Pixie5740 9th Jun 17, 12:46 PM
    • 10,626 Posts
    • 14,601 Thanks
    Pixie5740
    • #8
    • 9th Jun 17, 12:46 PM
    • #8
    • 9th Jun 17, 12:46 PM
    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
    Last edited by Pixie5740; 09-06-2017 at 12:52 PM.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • konn1ch1ha
    • By konn1ch1ha 9th Jun 17, 1:05 PM
    • 116 Posts
    • 6 Thanks
    konn1ch1ha
    • #9
    • 9th Jun 17, 1:05 PM
    • #9
    • 9th Jun 17, 1:05 PM
    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
    Originally posted by Pixie5740
    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
    • By Candyapple 9th Jun 17, 1:05 PM
    • 2,173 Posts
    • 1,672 Thanks
    Candyapple
    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
    Originally posted by Pixie5740
    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
    • By konn1ch1ha 9th Jun 17, 1:27 PM
    • 116 Posts
    • 6 Thanks
    konn1ch1ha
    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
    Originally posted by Candyapple
    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.
    • Herzlos
    • By Herzlos 9th Jun 17, 2:40 PM
    • 5,305 Posts
    • 4,769 Thanks
    Herzlos
    Forget about consolidating the overdraft into a loan, the overdraft will be cheaper.

    Focus on figuring out how to pay for the £2k in repairs. I'd probably look at getting any job I can in the short term if you've got so much down time. Bar/admin agency work, call centres, that sort of thing. If you're doing a lot of gigs hopefully you know some people who run pubs that could put a few shifts your way.
    • Pixie5740
    • By Pixie5740 9th Jun 17, 3:42 PM
    • 10,626 Posts
    • 14,601 Thanks
    Pixie5740
    Get the repairs done and then sell the property which will give you the money to clear your overdraft. You cannot afford to be a landlord.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • konn1ch1ha
    • By konn1ch1ha 11th Jun 17, 4:18 PM
    • 116 Posts
    • 6 Thanks
    konn1ch1ha
    Get the repairs done and then sell the property which will give you the money to clear your overdraft. You cannot afford to be a landlord.
    Originally posted by Pixie5740
    I think this would be a very unwise move. The rental income helps pay my rent, not to mention the amount it's gaining in equity/capital as it stands.

    The flat itself hardly costs me any money and is a good asset, it's only this financial hurdle I need to get over. Everything else is minor.
    • konn1ch1ha
    • By konn1ch1ha 11th Jun 17, 4:21 PM
    • 116 Posts
    • 6 Thanks
    konn1ch1ha
    Forget about consolidating the overdraft into a loan, the overdraft will be cheaper.

    Focus on figuring out how to pay for the £2k in repairs. I'd probably look at getting any job I can in the short term if you've got so much down time. Bar/admin agency work, call centres, that sort of thing. If you're doing a lot of gigs hopefully you know some people who run pubs that could put a few shifts your way.
    Originally posted by Herzlos
    True, but my logic is to eliminate the overdraft rather than paying each month just to be in it. Whereas, if I'm paying off a loan that I've borrowed, at least it's going towards something and paying it off?

    Paying for the od interest isn't getting me anywhere and just indefinitely keeping me there.
    • konn1ch1ha
    • By konn1ch1ha 11th Jun 17, 4:26 PM
    • 116 Posts
    • 6 Thanks
    konn1ch1ha
    Forget about consolidating the overdraft into a loan, the overdraft will be cheaper.

    Focus on figuring out how to pay for the £2k in repairs. I'd probably look at getting any job I can in the short term if you've got so much down time. Bar/admin agency work, call centres, that sort of thing. If you're doing a lot of gigs hopefully you know some people who run pubs that could put a few shifts your way.
    Originally posted by Herzlos
    At the same time, paying off a bank loan for any more than three years I think is a bit ludicrous...
    • DCFC79
    • By DCFC79 11th Jun 17, 8:02 PM
    • 29,556 Posts
    • 18,680 Thanks
    DCFC79
    I think this would be a very unwise move. The rental income helps pay my rent, not to mention the amount it's gaining in equity/capital as it stands.

    The flat itself hardly costs me any money and is a good asset, it's only this financial hurdle I need to get over. Everything else is minor.
    Originally posted by konn1ch1ha
    Its a long finamcial hurdle.

    If nothing has been sorted in the last 4 months why not sell the property or get them done then sell as been mentioned.
    Je Suis Charlie
    • Pixie5740
    • By Pixie5740 12th Jun 17, 1:15 PM
    • 10,626 Posts
    • 14,601 Thanks
    Pixie5740
    I think this would be a very unwise move. The rental income helps pay my rent, not to mention the amount it's gaining in equity/capital as it stands.

    The flat itself hardly costs me any money and is a good asset, it's only this financial hurdle I need to get over. Everything else is minor.
    Originally posted by konn1ch1ha
    The flat has hardly cost you anything so far yet you don't earn enough from it to pay a simple £2k bill that you've known about for ages. God help your tenant if the heating goes or something else needs repaired in the property.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • Herzlos
    • By Herzlos 12th Jun 17, 2:30 PM
    • 5,305 Posts
    • 4,769 Thanks
    Herzlos
    True, but my logic is to eliminate the overdraft rather than paying each month just to be in it. Whereas, if I'm paying off a loan that I've borrowed, at least it's going towards something and paying it off?

    Paying for the od interest isn't getting me anywhere and just indefinitely keeping me there.
    Originally posted by konn1ch1ha
    But if you transfer the debt to a loan you be paying more interest.

    I can understand if you want it to be paid back on a repayment basis because you have no willpower to clear an overdraft, but from a financial standpoint it's stupid.

    Pay down the overdraft, then get rid of it and move onto trying to put aside some savings before you need to do something else to the flat.

    Borrow what you need to get the repair done, then bring your salary up and your costs down, until you're stable. Even if that means moving somewhere cheaper and taking a shelf stacking job in Tesco.
    Last edited by Herzlos; 12-06-2017 at 2:33 PM.
    • konn1ch1ha
    • By konn1ch1ha 12th Jun 17, 11:34 PM
    • 116 Posts
    • 6 Thanks
    konn1ch1ha
    But if you transfer the debt to a loan you be paying more interest.

    I can understand if you want it to be paid back on a repayment basis because you have no willpower to clear an overdraft, but from a financial standpoint it's stupid.

    Pay down the overdraft, then get rid of it and move onto trying to put aside some savings before you need to do something else to the flat.

    Borrow what you need to get the repair done, then bring your salary up and your costs down, until you're stable. Even if that means moving somewhere cheaper and taking a shelf stacking job in Tesco.
    Originally posted by Herzlos
    This the best and most constructive answer out of all of the threads.


    Thanks.
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