Home Improvements Loan

M_Wootton_2

Hi
:money:
I need to do some home improvements and would like borrow say £10k.

My financial details are below and wonder if it is prudent to borrow such an amount. and if so what would be the best way, CC or loan or finance etc. Any help would be greatly appreciated

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1522
Partners monthly income after tax....... 960
Benefits................................ 1
Other income............................ 1
Total monthly income.................... 2484

Monthly Expense Details
Mortgage................................ 512
Secured loan repayments................. 126
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 94
Electricity............................. 30
Gas..................................... 60
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 45
Mobile phone............................ 10
TV Licence.............................. 15
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 60
Road tax................................ 15
Car Insurance........................... 25
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 52
Other insurance......................... 0
Presents (birthday, christmas etc)...... 800
Haircuts................................ 0
Entertainment........................... 35
Holiday................................. 60
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Tax Credit Repayment.................... 60
Total monthly expenses.................. 2319


Assets
Cash.................................... 0
House value (Gross)..................... 128000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 129000


Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 72000....(512)......3.99
Secured Debt.................. 0........(126)......0
Total secured debts........... 72000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................7000......120.......6.49
Total unsecured debts..........7000......120.......-


Monthly Budget Summary
Total monthly income.................... 2,484
Expenses (including secured debts)...... 2,319
Available for debt repayments........... 165
Monthly UNsecured debt repayments....... 120
Surplus(deficit if negative)............ 45

Personal Balance Sheet Summary
Total assets (things you own)........... 129,000
Total Secured debt...................... -72,000
Total Unsecured debt.................... -7,000
Net Assets.............................. 50,000

Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

Rafter

M,

Great to see such a well researched post....

Your current debts seem to be under control and well covered by your income. Even if your house price drops significantly you seem to have a good amount of equity so you can get a good mortgage deal when your current one comes to an end.

You are obviously very generous with presents too!

The main issue for you before taking on more debt is what would happen if one of you lost your income? Could you get by for 3 months or more until you got another job? Are you both in secure jobs?

Are you also likely to have other big bills in the near future? Will your car need replacing for example?

Will someone lend you that much money? Probably in joint names yes. The credit card and secured loan might be an issue and you might not get the best buy APR.

Borrowing on 0% credit cards is an option and not as attractive as it used to be. Transfer fees and lack of offers and a higher minimum payment are things to watch out for.

Next steps..... Suggest you have a look at the 'smart loan calculator' on a site like moneysupermarket.com That will give you an idea about what you will be paying and what the interest cost will be.

You can then decide whether your home improvements are worth that and whether it is affordable for you.

Good luck

R.

CLAPTON

how much is the secured debt?

do you really spend 9,600 on present each year

if you can afford to repay 10,000 when why do you have a 7,000 credit card debt?

M_Wootton_2

M_Wootton wrote: »

Hi
:money:
I need to do some home improvements and would like borrow say £10k.

My financial details are below and wonder if it is prudent to borrow such an amount. and if so what would be the best way, CC or loan or finance etc. Any help would be greatly appreciated

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1522
Partners monthly income after tax....... 960
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2482

Monthly Expense Details
Mortgage................................ 512
Secured loan repayments................. 126
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 94
Electricity............................. 30
Gas..................................... 60
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 45
Mobile phone............................ 10
TV Licence.............................. 15
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 0
Petrol/diesel........................... 60
Road tax................................ 15
Car Insurance........................... 25
Car maintenance (including MOT)......... 30
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 13
Contents insurance...................... 13
Life assurance ......................... 52
Other insurance......................... 0
Presents (birthday, christmas etc)...... 60
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 80
Emergency fund.......................... 0
Total monthly expenses.................. 1480


Assets
Cash.................................... 0
House value (Gross)..................... 128000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 129000


Secured Debts
Description....................Debt......Monthly...APR
Mortgage...................... 72000....(512)......3.99
Secured Debt.................. 0........(126)......0
Total secured debts........... 72000.....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card....................7000......120.......0
Total unsecured debts..........7000......120.......-


Monthly Budget Summary
Total monthly income.................... 2,482
Expenses (including secured debts)...... 1,480
Available for debt repayments........... 1,002
Monthly UNsecured debt repayments....... 120
Surplus(deficit if negative)............ 882

Personal Balance Sheet Summary
Total assets (things you own)........... 129,000
Total Secured debt...................... -72,000
Total Unsecured debt.................... -7,000
Net Assets.............................. 50,000

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.