£20000 loan

kevinhartshorn

Hi,




I need to borrow around £20000 for an extension. We moved in to the house around 9 months ago and had a 20% deposit. Both are credit history's are good but we have no savings. I earn around £28k a year but theres lots of overtime to go on top of that. Whats the best way to raise the money??? I was thinking a bank loan over 6 years.?




Thanks for any useful info.

Gaz83

No-one's going to give you an unsecured loan of £20,000 on a salary of £28k.

Start doing the overtime, and saving up.

[Deleted User]

You could try your bank. But it's a big ask on that income.

HappyMJ

kevinhartshorn wrote: »

Hi,






I need to borrow around £20000 for an extension. We moved in to the house around 9 months ago and had a 20% deposit. Both are credit history's are good but we have no savings. I earn around £28k a year but theres lots of overtime to go on top of that. Whats the best way to raise the money??? I was thinking a bank loan over 6 years.?




Thanks for any useful info.

Saving is usually considered the best way to raise the money.

A £19,999 loan over 6 years from Sainsburys would cost you £307.86 per month.

If you are saving £300 per month at the moment then it's possible you can afford the loan. If you aren't saving £300 per month which you have stated then you've got to figure out why you aren't as you won't be able to make the payments once you've got the loan.

I'd save for 6 months first before considering taking the loan. If £300 a month is impossible to save don't take the loan.

kevinhartshorn

I can afford £300-£400 a month repayment, you don't think a bank will lend to me thow?
what about remortgage to raise the money? not my preferred option.

bsms1147

kevinhartshorn wrote: »

I can afford £300-£400 a month repayment,

...Any yet you have no savings?

you don't think a bank will lend to me thow?

No. You might be very lucky to get ~£14k.

what about remortgage to raise the money? not my preferred option.

Possible. Ask your lender.

HappyMJ

kevinhartshorn wrote: »

I can afford £300-£400 a month repayment, you don't think a bank will lend to me thow?
what about remortgage to raise the money? not my preferred option.

So why do you not have any savings?

You could get a further advance on your mortgage. Once the works are complete you could re-mortgage to a better deal and better LTV ratio.

kevinhartshorn

No savings due to having a baby and spending it all renovating the house to this stage. could save up, which would be the sensible option but we want the work doing now.

Ebe_Scrooge

In that case a further advance on your mortgage is probably your best bet.

Herzlos

Do you NEED to do the work now; In Winter?

foxy-stoat

I would save up for 12 months before you do anything, that way you will have £3600 in the bank and you will only need £17000 loan for your extension.

I doubt your lender will allow an advance on your newish mortgage which takes you over 80% LTV unless your house value has gone up since you bought it.