Home Improvement Finance

McNeely

Hello,

We're buying our first house. We have a regular monthly surplus, but very low savings after putting down our deposit. We need to put in £12k in repairs. We need new white goods (£2.5k), and new kitchen (£3k). My question is about financing options.

We could buy the white goods and kitchen on 0% interest financing. That seems reasonable.
We could take out an unsecured loan (e.g. Sainsbury's bank) for the repairs.

Having just taken out a mortgage, will we struggle to be approved for the 0% and the unsecured home improvement loan? How stringent are their lending criteria? Any other suggestions about how to make this work?

One worry I have is this: the mortgage becomes final, then we take out the personal loan, then we go to get the 0%'s and they say we can't because of the loan we've just taken out. Is that realistic?

McNeely

Oh, and there would be new carpet 0%. I guess the question really comes down to how strict are the eligibilities for the 0% credit and the home improvement loans.

PeacefulWaters

When you enter time at address 1 month, your credit file shows a new mortgage debt and you're not on the voters roll you are less likely to be accepted for credit.

When you are a homeowner you are more likely to be accepted for credit than somebody renting or living with parents.

The more searches you have the less likely you are to get additional credit.

But are you sure you need to spend all this money? Are there second hand or freecycle options around that could see you through while you save up?

£12k in repairs seems an extraordinary thing to take on without having the finance in place.

andyfromotley

McNeely wrote: »

Hello,

We're buying our first house. We have a regular monthly surplus, but very low savings after putting down our deposit. We need to put in £12k in repairs. We need new white goods (£2.5k), and new kitchen (£3k). My question is about financing options.

I dont want to come over all 'pah in my day we made do with a cardboard box and a stick' but you are definitely confusing needs with wants.

How much is your surplus? how long would it take you to save for these items? You can pick up second hand white goods for next to nothing to tide you over until you have saved enough for them. I'm guessing that you are relatively young and starting out with your first house. You could set the pattern for the rest of your life right now, borrowing and spending or saving and making do until you can afford this stuff. Hope this gives you some food for thought.

poppasmurf_bewdley

McNeely wrote: »

Hello,

We're buying our first house. We have a regular monthly surplus, but very low savings after putting down our deposit. We need to put in £12k in repairs. We need new white goods (£2.5k), and new kitchen (£3k). My question is about financing options.

We could buy the white goods and kitchen on 0% interest financing. That seems reasonable.
We could take out an unsecured loan (e.g. Sainsbury's bank) for the repairs.

Having just taken out a mortgage, will we struggle to be approved for the 0% and the unsecured home improvement loan? How stringent are their lending criteria? Any other suggestions about how to make this work?

One worry I have is this: the mortgage becomes final, then we take out the personal loan, then we go to get the 0%'s and they say we can't because of the loan we've just taken out. Is that realistic?

Need or want? There is a huge difference. If it's 'want', then hold off until you are in a better position to afford them.

kuohu

Is it even possible to spend £2.5k on white goods?

DCFC79

kuohu wrote: »

Is it even possible to spend £2.5k on white goods?

I was thinking the same.

Pixie5740

kuohu wrote: »

Is it even possible to spend £2.5k on white goods?

DCFC79 wrote: »

I was thinking the same.

You could blow most of a £2.5k budget on a Miele washer dryer if you really wanted to (and had the funds to do so). A SMEG fridge freezer could also make a sizeable dent in the budget too. Both are wants rather than needs though.

DCFC79

Pixie5740 wrote: »

You could blow most of a £2.5k budget on a Miele washer dryer if you really wanted to (and had the funds to do so). A SMEG fridge freezer could also make a sizeable dent in the budget too. Both are wants rather than needs though.

Yes I know it's possible to spend huge amount on white goods, agree it's a want.

mustang121

McNeely wrote: »

Oh, and there would be new carpet 0%. I guess the question really comes down to how strict are the eligibilities for the 0% credit and the home improvement loans.

Keep away from Carpet Right and other High Street Carpet brands. They are unfathomably overpriced with obnoxious and arrogant Sales Staff.


You will be shocked on how much money can be saved by getting quotes from local carpet fitters. If your local town has a decent market place then try carpet stalls there, such stalls could have been around for generations and have the best prices.

mustang121

McNeely wrote: »

Hello,

We're buying our first house. We have a regular monthly surplus, but very low savings after putting down our deposit. We need to put in £12k in repairs. We need new white goods (£2.5k), and new kitchen (£3k). My question is about financing options.

We could buy the white goods and kitchen on 0% interest financing. That seems reasonable.
We could take out an unsecured loan (e.g. Sainsbury's bank) for the repairs.

Having just taken out a mortgage, will we struggle to be approved for the 0% and the unsecured home improvement loan? How stringent are their lending criteria? Any other suggestions about how to make this work?

Talk with your montage adviser I believe it could be possible to get a little extra loan added to mortgage to help with home repairs.


As for finance on white goods or a kitchen (assuming the current one is liveable/workable). As a general rule, if you need to look at the price tag twice then the chances are you cannot afford it.

I've just found a Cooker, Washing machine and Fridge Freezer on Currys for a total of £687.00, so I am not sure where this £2.5k budget is coming from?