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    • Gareth43
    • By Gareth43 4th Dec 17, 9:52 AM
    • 6Posts
    • 1Thanks
    Gareth43
    Prestige finance
    • #1
    • 4th Dec 17, 9:52 AM
    Prestige finance 4th Dec 17 at 9:52 AM
    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?
Page 1
    • poppasmurf_bewdley
    • By poppasmurf_bewdley 4th Dec 17, 10:00 AM
    • 5,059 Posts
    • 5,201 Thanks
    poppasmurf_bewdley
    • #2
    • 4th Dec 17, 10:00 AM
    • #2
    • 4th Dec 17, 10:00 AM
    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?
    "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." Mr Wilkins Micawber in David Copperfield by Charles Dickens.
    • Herzlos
    • By Herzlos 4th Dec 17, 10:27 AM
    • 6,061 Posts
    • 5,504 Thanks
    Herzlos
    • #3
    • 4th Dec 17, 10:27 AM
    • #3
    • 4th Dec 17, 10:27 AM
    £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
    • By Gareth43 4th Dec 17, 11:52 AM
    • 6 Posts
    • 1 Thanks
    Gareth43
    • #4
    • 4th Dec 17, 11:52 AM
    • #4
    • 4th Dec 17, 11:52 AM
    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
    • By PeacefulWaters 4th Dec 17, 12:21 PM
    • 7,285 Posts
    • 9,016 Thanks
    PeacefulWaters
    • #5
    • 4th Dec 17, 12:21 PM
    • #5
    • 4th Dec 17, 12:21 PM
    You have five years to get a grip on your credit file.

    Use the £600 "freed up" to reduce debt.
    • fwor
    • By fwor 4th Dec 17, 12:25 PM
    • 5,887 Posts
    • 3,931 Thanks
    fwor
    • #6
    • 4th Dec 17, 12:25 PM
    • #6
    • 4th Dec 17, 12:25 PM
    I am consolidating 15k in debt ( car finance and a old loan)
    Originally posted by Gareth43
    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
    • By iolanthe07 4th Dec 17, 2:50 PM
    • 4,923 Posts
    • 4,636 Thanks
    iolanthe07
    • #7
    • 4th Dec 17, 2:50 PM
    • #7
    • 4th Dec 17, 2:50 PM
    Variable interest rates always seem to vary only one way - up.
    I used to think that good grammar is important, but now I know that good wine is importanter.
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