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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
    • 5,114 Posts
    • 5,261 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?
    "There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock
    • Herzlos
    • By Herzlos 4th Dec 17, 10:27 AM
    • 6,568 Posts
    • 5,874 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
    • 7,732 Posts
    • 9,693 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
    • 5,937 Posts
    • 3,995 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
    • 4,954 Posts
    • 4,657 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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