Me and wife get seperate loans?

Toberton

Has anybody got any advice/ opinions for me? My wife and I are looking to embark on some extensive home improvements and also buy a new car fairly soonish. We estimate we need to borrow around £30k.
Both of us have good jobs with combined annual salary around £85k. We have no other debts other than a mortgage and are making regular savings to a stocks & shares ISA. I've used MSE's loan repayment calculator to see how much repayments would be and we could afford to pay this back over 3 years, however we want to try to get as low an APR as possible to minimise the monthly repayment amount (obviously!).

Should we apply for separate loans of £15k each or one large loan of the full amount? Would applying for two loans from the same address have a negative effect on our likelihood of being accepted? Is it possible to be accepted for a large loan with the lowest advertised APR or will large sum always garner a higher APR?

FYI currently the mortgage is in just my wifes name (only got married 9 months ago) but the ISA is in my name only.

Any helpful thoughts or insights are welcome.

Cheers

TadleyBaggie

You can't get an unsecured loan of over £25K.

tlc678910

Hi,
As lots of the money is for home renovations and you have said that you are able to pay it back in a relatively short amount of time (the 3 years) could you not phase the work saving up and paying for it as you go?

Playing_with_Fire_2

Two loans of £15k over three years will generally have a lower APR than a £25k and a £5k loan. Are you trying to minimise the payments or the overall interest paid (a five year term would have lower payments but the APR can be higher and the overall interest would be higher).

I'd suggest that you apply for a loan for the car and your wife for home improvements - the loan company might slow down the application if you apply for home improvements on a house that is in your wife's name.

Check your credit reports (noddle is free forever, others have free trials) to make sure that everything is showing correctly, check you are on the electoral roll and that it is showing okay on your file. Have you moved over all of your accounts to your new address?

burlington6

Use your savings

DCFC79

burlington6 wrote: »

Use you savings

Now that's a good suggestion

[Deleted User]

burlington6 wrote: »

Use you savings

What sort of madness is this?!

burlington6

Deleted_User wrote: »

What sort of madness is this?!

Hahaha :rotfl:

DCFC79

Deleted_User wrote: »

What sort of madness is this?!

Its a wild idea but it could work.

CHR15

Turn down an income of 1% in a savings account in exchange for a 6% interest rate on a loan, who would do such a radical idea?