£50k Loan for Home Improvement

flat_broke

Tixy wrote: »

If you do take a secured loan at a reasonably high interest rate now once your extension has been built you may be able to remortgage to a more competitive rate. And an unsecured loan likely wouldn't be cheaper anyway (even if you could get a loan for say £25k of it).

Obviously you are slightly limited if you don't want to switch from your existing mortgage lender - but it may be worth paying a higher interest rate on £11k than lose your good deal with them. At some point if the B&B deal becomes less competitive you could always try shopping around to remortgage the whole lot then.

Alternatively could you delay the extension for a couple of years and significantly boost your savings that way? what can you save a month towards it? £750? could you save more than that on your salary?
That plus with your existing savings would mean you'd then be looking at borrowing half the original amount.

I like your idea here. I will investigate taking out a £25k unsercured loan (which I think will be cheaper) and then a £25k secured loan. Once the work is done, I'd expect the property value to increase to around £400k at which point I may be able to remortgage £295k elsewhere and get a better deal and pay off the secured loan!

I will investigate!

Thanks.

flat_broke

ringo_24601 wrote: »

Who want's an extension ASAP?

She wants yesterday. And a Hermes Birkin Bag. It's ridiculous. But I love her.

ERICS_MUM

flat_broke wrote: »

She wants yesterday. And a Hermes Birkin Bag. It's ridiculous. But I love her.

would you like a second wife ?

flat_broke

ringo_24601 wrote: »

Who want's an extension ASAP?

BTW - it only took me a few minutes to find someone offering a £50k loan at 8.9% over 7 years... works out at £793.24 per month

Where did you see this?!

flat_broke

ERICS_MUM wrote: »

would you like a second wife ?

Not sure I could afford it...

[Deleted User]

flat_broke wrote: »

Where did you see this?!

I just did a quick search on http://www.moneysupermarket.com

It was a secured loan though, with a firm i'd never heard of before

Tell the missus to chillout.. I do think it might be a good idea to save a bit first... i bet you could have £5k together in 6 months time (and if you can't.. why are you borrowing money you can't afford to pay back )

bouncydog1

flat_broke wrote: »

She wants yesterday. And a Hermes Birkin Bag. It's ridiculous. But I love her.

Well perhaps she could get a job (assuming she stays at home) and help you save up quicker!

supersaverg

I am looking at extending my kitchen.

Have considered personal loan or remortgage to obtain equity release.

Does anyone have experience of this: Which option did you choose?

Your thoughts helpful.

I am leaning towards remortgage (due to impending rate rise) to 'kill two birds with one stone.

Personal loan is an option as I have an excellent credit score.

Need £25k.

Comments/Suggestions:?

DCFC79

supersaverg wrote: »

Personal loan is an option as I have an excellent credit score.

Need £25k.

Can I just point out that your credit score is of by no means a dead cert to you being accepted for a loan at say 5%.

Clive_Woody

supersaverg wrote: »

I am looking at extending my kitchen.

Have considered personal loan or remortgage to obtain equity release.

Does anyone have experience of this: Which option did you choose?

Your thoughts helpful.

I am leaning towards remortgage (due to impending rate rise) to 'kill two birds with one stone.

Personal loan is an option as I have an excellent credit score.

Need £25k.

Comments/Suggestions:?

When we were looking at something similar our plan was to borrow additional funds from our current mortgage lender, with the additional borrowing on a 5 year fixed rate deal with the intention of paying this off during those 5 years.

Obviously with a mortgage it is secured against your property so if you default your property is at risk but generally you will get better rates with a mortgage.

It will of course also depend on the LTV level that additional borrowing would take you to if you borrowed more money as a mortgage.