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  • FIRST POST
    • konn1ch1ha
    • By konn1ch1ha 9th Jun 17, 10:25 AM
    • 113Posts
    • 5Thanks
    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 2
    • Candyapple
    • By Candyapple 13th Jun 17, 12:52 PM
    • 2,059 Posts
    • 1,593 Thanks
    Candyapple
    This the best and most constructive answer out of all of the threads.


    Thanks.
    Originally posted by konn1ch1ha
    I thought this post below pretty much said the same thing, only 4 months earlier, but perhaps only now you are willing to listen?

    http://forums.moneysavingexpert.com/showpost.php?p=72051684&postcount=37

    So given that you agree with the advice, are you going to give up your musical hobby / living in London?
    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
    • enthusiasticsaver
    • By enthusiasticsaver 13th Jun 17, 1:23 PM
    • 3,544 Posts
    • 6,178 Thanks
    enthusiasticsaver
    It is not a good idea to consolidate to get rid of existing borrowing. The way to reduce your overdraft is to budget and stick to it and put in the budget a monthly amount to repay your overdraft by. At the same time you should address your lack of savings for emergencies as you obviously don't have any and as a home owner you should. Similarly borrowing for wants and not needs in your situation is not a good idea until you have got on top of your finances.

    The essential repairs would ideally be financed by a 0% money transfer card if you are eligible for one. A bank loan is an option but 21% is a really high interest rate so you need to decide if you are willing to pay that rate (I wouldn't) or try to come to some arrangement with your shared ownership company (ie staggered repayments if they will allow this?).
    Debt and mortgage free and saving for early retirement
    • konn1ch1ha
    • By konn1ch1ha 13th Jun 17, 5:52 PM
    • 113 Posts
    • 5 Thanks
    konn1ch1ha
    It is not a good idea to consolidate to get rid of existing borrowing. The way to reduce your overdraft is to budget and stick to it and put in the budget a monthly amount to repay your overdraft by. At the same time you should address your lack of savings for emergencies as you obviously don't have any and as a home owner you should. Similarly borrowing for wants and not needs in your situation is not a good idea until you have got on top of your finances.

    The essential repairs would ideally be financed by a 0% money transfer card if you are eligible for one. A bank loan is an option but 21% is a really high interest rate so you need to decide if you are willing to pay that rate (I wouldn't) or try to come to some arrangement with your shared ownership company (ie staggered repayments if they will allow this?).
    Originally posted by enthusiasticsaver
    I'm not going to borrow anymore than I need to, which is £2000. Paying it off over three years is doable - I have no other choice. Transfer cards that have been offered are an extortion.

    I can ask the shared ownership but it's unlikely. I know one of the owners paid half and half. It might be worth asking.
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