loans for kitchen and cr

liamcat1

hello all,

for about 10 years i have been paying off debt, meaning i have been unable to get any more credit (not that i want it)

been living on the basics, now just 2 monthly payments left, and its all paid. £280 a month, which is all well and good. however, during this time our kitchen is falling apart, and the car is on its last legs, with repairs working out unaffordable, meaning cutbacks of even more

i need to borrow more money to fit a kitchen and buy a car

am i better off combining one loan for both items, or, going to a 'car supermarket' and using their financial advisor for the car and a seperate provider for the kitchen?

im confused as the person in the car supermarket aid that doing the 2 seperately would be cleaner?

anyone have any ideas?


best regards

liamcat1

also, just to add, is it better to remorgage the house using the available equity - around £37000

now being debt free, will this mean we will qualify for a cheaper rate than normal?


quick scenario of our situaion is, we bought a house, the cost of the repairs outstripped our resources, leaving us with the debt, we remorgaged about 10 years ago to pay everything off, which we thought we had - only to discover there was additional debt. so for last 10 years, have been paying back the mortgage, and this unexpected debt as well

thanks

CHR15

liamcat1 wrote: »

im confused as the person in the car supermarket aid that doing the 2 seperately would be cleaner?

I think that is a given. the Salesman is thinking "get this guy to take finance where I get a fat commission or tell him to get the money elsewhere and I get nothing?"

Having no debt is obviously better than having debt when being considered but it all comes down to what is on your credit file.

Remortgaging is kind of excusable where you increase the value of your home as a result, but risking your very home for a second hand car is not wise. Also consider how much you will be paying for that car overall and the likelihood of you still owning it when the final payment is made.

SeanG79

The car dealer has commission in the car finance, so will always want you to do the finance through him.

The additional debt, was this in the form of a loan?

You mention the equity being £37k, but generally the mortgage company will look at a % in terms of loan to value as to what they will lend. Also you need to consider the fees associated with setting up a mortgage/remortgage.

whether you get a joint loan for the kitchen and the car or 2 separate loans should really depend on what term you wish to pay back the money, as mentioned above you don't want to still be paying off a car long after its usable life.

A personal loan may be the cheapest overall option for the kitchen and then depending on the term you want can also be used for the car, alternatively there is the car finance route for the car.

bengalknights

Getting one loan is better as the interest should be lower overall

[Deleted User]

a loan for 7.5k will be the cheapest in apr terms,but that should be enough for a reasonable car and a kitchen

poppasmurf_bewdley

How is your kitchen falling apart? Mine was installed in 1991 and is still in fine fettle.

You're just coming out of horrendous debt and you can't wait to get back into it

Stick with the kitchen and the car, maybe doing a few running repairs, and get some money into a savings account for a year or so. You will find it will make an almighty difference to your life.

inmypocketnottheirs

liamcat1 wrote: »

for about 10 years i have been paying off debt, meaning i have been unable to get any more credit (not that i want it)

Can you see the problem with this statement?

jellie

inmypocketnottheirs wrote: »

Can you see the problem with this statement?

I thought that too, just before I read the OP now wants to get into debt again.

geoffky

Some people never learn...Or learn the hard way..

Mara69

liamcat1 wrote: »

for about 10 years i have been paying off debt, meaning i have been unable to get any more credit (not that i want it)

been living on the basics, now just 2 monthly payments left, and its all paid. £280 a month, which is all well and good. however, during this time our kitchen is falling apart, and the car is on its last legs, with repairs working out unaffordable, meaning cutbacks of even more

i need to borrow more money to fit a kitchen and buy a car

This is madness. You've been paying off debt for 10 years and the very moment it is paid, you want to go and get more debt. Save the £280 a month you've been paying. Enjoy not being in debt. Relish buying something with money you actually have and not money you don't have.

I really don't understand this mindset at all.