Need £18k loan for new kitchen - best option?

orange71

Foxy-Stoat wrote: »

Maybe take out 6 credit cards with zero percent interest/ low interest super balance transfer and play the juggling game for a few years.....if your on the ball you could borrow many thousands of pounds with lower interest than a mortgage, not sure about securing the low interest for 10 years though....if alls you can afford is £150 a month for £18K then you may need to save up for a few years or use savings.

did that a few years ago when it was fee free when wife on mat leave, shoved cash from cards in savings account and juggled for 12 months. Came out with £1500 in interest :T don't think it'll work for this though.

orange71

Clive_Woody wrote: »

You can get a quality kitchen for a lot less than that to be honest. If you don't mind me asking, who is that quote from?

A local independent should be able to install a really nice kitchen for a lot less than that.

he is a local independant!:p

orange71

closed wrote: »

Deja vu

:rotfl:I spotted that - had completely forgotten about it!! That was when we last did the kitchen on the cheap. Hence the need to do it properly now!!

SailorSam

orange71 wrote: »

true - but it's an investment, we are planning to stay in house forever, want quality that will last. Did DIY job last time round and it lasted 5 yrs... want to do it properly this time.

My Ikea kitchen was done about 15yrs ago and looks as good as new.

Foxy-Stoat_3

orange71 wrote: »

did that a few years ago when it was fee free when wife on mat leave, shoved cash from cards in savings account and juggled for 12 months. Came out with £1500 in interest :T don't think it'll work for this though.

Not bad going....need to be on the ball though. Fees now for balance transfers are around 2-3%, super balance transfers are free with barclays with an interest rate of 2.9%...they keep sending me letters asking if I want to transfer £10K to my bank account for low interest.....thought we were past all this pressure borrowing !!!

orange71

ahhh... savings interest. I remember those days (just about...)

Caroline_a

I had a new kitchen put in a couple of years ago. Priced up from Wickes it was around £20k. Cheaper version from one of the DIY stores was about £16k. Got a carpenter in to do it... £6k, looks fantastic, fits everywhere (and my kitchen is a funny shape!).

If your £18k is an independent, go find a carpenter and ask him!

orange71

all sound advice. Of course don't want to be paying over the odds, but equally don't want to make false economies... so hard to know what to do for best.

Choices...choices...

JimmyTheWig

orange71 wrote: »

thanks - 20 yrs to retirement yet so extended mortgage time period a good option.

Santander (for example) have a 5 year fix at 3.29%. With a 20 year repayment term you'd be paying £387 a month on a loan of £68,000.
I calculate that you're currently paying around £230 a month and you say you can afford another £150 a month, which gives you a budget of £380 a month. Can you find the extra £7 a month?

I'm not suggesting that you go with Santander. It's who we are with so who I always go to for comparisons. You may well be able to get a better deal than this.

Obviously the bank will need to agree that you can afford the new loan (salary multilples, etc).

House is worth £260k so loan-to-value v. low (if I understand you correctly).

Yes, you understand correctly. As you've got more than 50% equity in the property I think you might be able to get an interest-only mortgage. But I don't know. I believe they are few and far between these days.

orange71

I'll need to factor in the £2700 redemption on current deal as well though...