FTB. Mortgage about to start, need extra borrowing.

alyn84uk

Hello, I'm a FTB and my mortage is about to start in the next couple of weeks I hope. However after my mortgage starts i need to borrow some extra to do the house up that I've bought so we are able to live in it. Needs central heating etc.

I already have a 10,000 loan with natwest which i used to cover part of my deposit and solicitor fees etc.

I am looking for a home owner loan, need about 25,000 to pay off the 10,000 above, need about 10,000 for home improvements which will add to the house value as they are centra heating type ones, and new windows etc. plus planning on using the 5000 left over to pay off my car loan, credit card after christmas and some other bits.

FirstPlus seem quite good, can have 25,000 over 25 years, paying 200 a month. Is this a wise choice or am i better just getting another loan on top of what ove already got and doing it that way.

In any case i need about 10,000 extra. Any options for me.

All comments, suggestions welcomed.

Thanks.

brasso

I don't know if you'll get a 'homeowner loan' unless you have some equity in the house.

How much was the house and what was the deposit?

alyn84uk

House was 118,000 deposit was 8000.

UK007BullDog

Can you give us a breakdown please (You and your partner):

Your age:
Your gross incomes (bonus overtime separate):

List your outgoings:
Loan amount and monthly payment and length to run
Same with CC's
Mortgage: Type and monthly payment

Paying a £25K loan over 25 years is crazy in my opinion. Have they shown you how much interest you will be paying. Have you checked with your £10K loan if you can pay it off early without any penalties?

Have you spoken to British Gas? They might offer you a deal for 3 years interest free credit and will fit you a complete system.

As you already have a mortgage, loans, credit cards you might not be able to get another loan as you might be "overexposed" to debt already.
And the loan companies will find out as they check your credit record.

Did you arrange this mortgage yourself? I would have discussed with you to go for a 100% mortgage or more and use the £8k deposit instead for the important heating system. As that would be cheaper in the long run and the loan interest rate better than what you are trying to do now.

alyn84uk

Right, thats the answer I was looking for, I thought paying 25k over 25 years was a bit of a mad idea too. Clarified! Thanks!

ok. Mortgage is 110,000 not started paying yet. its 500 a month, normal capital interent mortgage, fixed for 2 years.

i have 2000 on a credit card at 0% which has just been transferred there other day. going to pay it off 160 a month. over the year.

Have a car loan, theres 2 years to go on it. 100£ a month.
have the 10,000 loan with nat west over 5 years, its 190£ a month. only made 1 payment to date. so 5 years left.

i earn 1300 a month (20845 a year) shes on about 600 a month (10,000 a year).

Mortgage been arranged through nat west mortgage adviser. could not get a 100% mortgage because they would not borrow me enough for the property and it was an expensive option, seeing as i did not have any deposit to put down. therefore went for the 2 year fixed rate mortgage and got a loan out to cover the 8000 deposit and solicitor fees etc.

have not checked the loan to see if can pay off early yet, im in very early stages.

The question is, the house needs to be done up. Should i borrow what i need when i need on one or more of my credit cards, get another loan, consolidate loans?? we need to buy a fridge and cooker and stuff, we need to put a kitchen in, i cannot afford to do it outright, just wanted some options of how i could do it.

cheers,

UK007BullDog

Well,

I dont think you might be able to get another loan as you are already quite exposed to debt.

Have you tought of asking around friends for spare bits and bobs? Try https://www.freecycle.org as I gave away a brand new dining table on there last year (we only wanted the chairs).

I would have definately suggested to you a 100% mortgage. Yes the interest rates are a bit higher but you would have been better off in the long run.

Cancel the CC's you do not use. Wait a couple of months and then apply for a loan or a CC. Maybe they will do it if they can see on your credit report that you have closed/settled some cards.