20k Loan needed

NaturalBornHustler

I will need a 20k loan for an imminent house renovation (costing 22,800)

my partner and I have a excellent credit score so i doubt we will get rejected however I have a few queries

What would be the best lender who will not penalise us for paying off the loan early? Ideally we want it over a maximum period of time but hopefully will clear it after a year or so as my partner and I earn around 4k a month after mortgage/outgoings

Sainsburys bank have an attractive rate but can only offer 15k as far as I am aware which is short of what we need.

I know some of you may be asking, save up the money but we are getting married in April and we have a few outgoings to cater for as well as the renovation itself (we have 10k saved as a contingency)

I would never put myself in a position where i am knee deep in debt but i am sure you can see that our salary is healthy

My final option would be a remortgage on a freehold property which is a final resort really (property valued at 325k)

I have only had to resort to use a loan years ago with my bank (natwest) and the funds were approved immediately

any input would be appreciated!

DCFC79

Whats a credit score ?

Oh you mean that figure given out by Experian, dont get hung up on it being seen by the lenders as they dont see it.

Apples2

NaturalBornHustler wrote: »

I will need a 20k loan for an imminent house renovation (costing 22,800)

as my partner and I earn around 4k a month after mortgage/outgoings

That makes no sense. After your mortgage and outgoings you have £4k a Month left but you've managed to save a whopping £2,800??

Affordability isn't about the amount you earn, it about the ratio of debt vs income.
Without more detail of your level of debt (across all loans, credit cards etc) and history of managing those debts, nobody can give a realistic reply.

As DCFC79 suggests, your score means absolutely zilch. It is provided by people who don't lend money, based on wild assumptions (they don't even know if you have a job or any kind of income at all).

heartbreak_star

Why can't you save for it? It won't take you that long!

HBS x

NaturalBornHustler

DCFC79 wrote: »

Whats a credit score ?

Oh you mean that figure given out by Experian, dont get hung up on it being seen by the lenders as they dont see it.

Agreed but lenders do use a credit scoring system for mortgages and loans, it also gives an individual an idea of how much they can borrow - personally, i have found experian to be useful

NaturalBornHustler

Apples2 wrote: »

That makes no sense. After your mortgage and outgoings you have £4k a Month left but you've managed to save a whopping £2,800??

Affordability isn't about the amount you earn, it about the ratio of debt vs income.
Without more detail of your level of debt (across all loans, credit cards etc) and history of managing those debts, nobody can give a realistic reply.

As DCFC79 suggests, your score means absolutely zilch. It is provided by people who don't lend money, based on wild assumptions (they don't even know if you have a job or any kind of income at all).

managed to save 10k ontop of the £95,000 deposit for the house and £75,000 on getting the BTL mortgage free last September oh and ontop of that, a 40k wedding between myself and wife to be.

Im not asking for advice / counseling on whether to take the loan out or not, I am doing so regardless!

I disagree, the experian credit report is useful, i was not on the electoral roll a few years back and this would have meant the mortgage lender at the time declining the offer. Experian picked this up and i managed to rectify this before the mortgage application.

I would love to defer the renovation until later in the year but the wedding will involve guests from abroad staying at mine and the houses current state is somewhat inhabitable

imoneyop

NaturalBornHustler wrote: »

Agreed but lenders do use a credit scoring system for mortgages and loans, it also gives an individual an idea of how much they can borrow - personally, i have found experian to be useful

Lenders use their own internal credit scoring system that considers a lot more information than the CRAs have access to.

The only people who benefit from Experian's random number generator is Experian's shareholders.

macman

Have a, cough, 'modest' wedding at £20K instead of £40K, and then you won't need the £20K loan?

imoneyop

NaturalBornHustler wrote: »

I disagree, the experian credit report is useful

You seem confused about the difference between a credit score and a credit report. one is useful and the other is a waste of the money you are spending on it each month.

NaturalBornHustler

imoneyop wrote: »

You seem confused about the difference between a credit score and a credit report. one is useful and the other is a waste of the money you are spending on it each month.

my report / score is free with my Natwest Silver Advantage account

NaturalBornHustler

macman wrote: »

Have a, cough, 'modest' wedding at £20K instead of £40K, and then you won't need the £20K loan?

i live by the motto - do it once, do it properly! i would hate to have a "modest" wedding and then think, we should have spent extra here and there