£20000 loan needed. Rather complex

maisie1234

We need a loan to pay the schools fees due to a short term cash flow issue. We are mortgage free and in our mid 50's. We have excellent credit scores. We have approx £30k on interest free credit cards as we recently moved house.

Both of us are in secure roles. I earn £54k and my partner earns minimum of £140k basic with bonus on top.

Rather than go through online process I was thinking of arranging a visit to my husband's bank to talk through the options. It will be a joint loan using his history with his bank which he has been with for 30 years.

Is that still something to consider now or is it all now done online?

When we had a mortgage I used to move it around every few years and tbh the call centre agents were shocking and I was often given duff information which I knew was wrong.

Looking for perhaps payments over 5 years with an option to pay back large lump sums. If required we can secure against the house (but would rather not)

Any advice please. The schools fees finish in 3 years.

Gaz83

It's all done online these days. The only difference in visiting a bank is that it will be a bank employee entering the details for you, not you yourself. It'll still be the same criteria used to determine whether or not you'll be accepted.

If you've recently moved house (you don't say whether you've taken out a mortgage or not) you might find it's too soon to be accepted for such a large loan.

I'd imagine quite a few banks will wonder how a family with a joint income of £200k doesn't have at least 10% of that in savings.

DCFC79

Cheaper option is to move the kids into public education.

So do you have credit card debts of 30k ?

A question I ask is how much do you have left over once all bills are paid ?

Where is this money ?

Nebulous2

That doesn't sound very complex to me. If you have no hidden issues then it should be fairly straightforward. Are you on the electoral roll at your new house?

The problem with his bank may be that they don't give the best rates. See here for best deals. A simple online application should give you an offer, without talking to anyone.

maisie1234

Thanks for replying so quickly. We cashed in as much as we could to pay off the mortgage so we are mortgage free. On reflection we should have kept a small mortgage but my husband company has some cash flow issues. We have always paid out the fees from income. We did have savings but used them to buy the house. House is worth £1 million. Give us 6 months and we will be back on track.

I have a final salary pension so come retirement we will be comfortable. Both of us are in good health but have a number of life insurance policies and I have 4 x my salary as life cover.

maisie1234

Have already put one child through private eduction and we are close to the other finishing so don't see the point in moving my child now.

Gaz83

maisie1234 wrote: »

Thanks for replying so quickly. We cashed in as much as we could to pay off the mortgage so we are mortgage free. On reflection we should have kept a small mortgage but my husband company has some cash flow issues. We have always paid out the fees from income. We did have savings but used them to buy the house. House is worth £1 million. Give us 6 months and we will be back on track.

I have a final salary pension so come retirement we will be comfortable. Both of us are in good health but have a number of life insurance policies and I have 4 x my salary as life cover.

You're not in retirement now, though.

How much do you have left at the end of the month, after all bills and living expenses are taken care of?

maisie1234

The credit card 'debts' are interest free cards..

McKneff

Could you not just budget a lot for the next 6 months and pay the school in installments9

maisie1234

School fees are £33k per year if that helps. We both work full time and realistically if we moved our child it would cause another issue in getting them to and from school. We live in the country so little public transport.

We have never had to look at borrowing before. It's just circumstances have dictated we need this loan.

maisie1234

Our outgoings will also drop somewhat as the house has been furnished and little is now needed to be done.