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Home Improvement Loans

My wife and I are looking to apply for a home improvement loan and we will be looking for around £20,000. However we have noticed that the interest rises significantly once the amount increase above £12,000. Therefore, is there anything to stop my wife and I applying for 2 separate loans of £10,000 at a reduced interest rate, or is there restrictions on loans per household? We would both have similar credit ratings.

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Are you applying to to your own mortgage company for the loan(s) ?
  • gb12345
    gb12345 Posts: 3,055 Forumite
    Livi2006 wrote: »
    My wife and I are looking to apply for a home improvement loan and we will be looking for around £20,000. However we have noticed that the interest rises significantly once the amount increase above £12,000. Therefore, is there anything to stop my wife and I applying for 2 separate loans of £10,000 at a reduced interest rate, or is there restrictions on loans per household? We would both have similar credit ratings.

    The fact you both have similar "credit ratings" doesn't man a thing.

    Lenders will look at existing credit levels compared with salary and various other factors, so you could end up with one of you getting a headline rate and the other a higher one, meaning your saving is wiped out.
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