£20000 loan needed. Rather complex

27cool

For a couple with the assets and income they say they have. They don't seem to me to have much financial acumen.
It's not as if these school fees have crept up unexpectedly.
Anyway, as someone has said, the obvious answer is to remortgage for a short period of years.

TrustyOven

27cool wrote: »

For a couple with the assets and income they say they have. They don't seem to me to have much financial acumen.

You'd be surprised how often that happens.

I'm reading The Millionaire Next Door, and this is what the authors coined as "high-income Under Accumulators of Wealth" ( https://en.wikipedia.org/wiki/The_Millionaire_Next_Door#UAWs_versus_PAWs )

Seems to usually happen as a result of feelings of entitlement to high-status items like expensive watches, suits, cars, jewelry, holidays and homes. And keeping up with the Joneses.

moneycantbuyyoulove

It makes me slightly uncomfortable that this poster seems to be being judged for having a high income and a sizeable property. Surely, if someone is asking for advice, that is all.

I'm not sure why some go to the bother to search for old posts previously made - how is this relevant other than to try to cast doubt and bad feeling?

Financial hardship can hit anyone and it's all relative. Generally, the higher the income, the higher the outgoings - people usually live to their means. Nothing wrong with that.

leespot

I'm not judging the OP - each to their own. But..

On those incomes, combined takehome would be approx £10,000 per month? With only £1500 per month left after expenses, and no mortgage, there is a lot of money being spent on other things and that is something the bank would look at when considering your loan application. (My partner and I earn a joint income of only £60k compared to your almost £200k and have more than that left after expenses and we have a mortgage)

There are 3 years of school remaining, just shy of £100,000 @ £33,000 per year.

You want to borrow £20,000 for up to 5 years, but a few posts later you say you'll be sorted in 6 months? It would be better if you borrowed the money against the property because in all honesty the £20,000 you're looking for doesn't touch the sides in terms of what is left to pay in school fees.

There is some really good advice on these boards with regards to money saving - and that applies to anyone regardless of their income.

AllyMac

Why do you put inverted commas around the word debt - 'debt' for £30K on crddit cards?

You have a £30K debt, not 'debt'.

Usually I wouldn't ever say to remortgage when you can't afford things... but for 3 years of school fees, I would.

maisie1234

Moneycantbuyyoulove is correct. I am looking for advice. Just because we earn good salaries doesn't necessarily mean sometimes we need some assistance.. We overspent on the furnishing of the new house. That is now done and the bonus expected has been postponed until Feb/march 17.

As someone has strangly dug out an old post I will respond. Its rather odd to look into a post in that much detail but we HAVE moved house. I would love to say we kept £200k over to comfortably pay the school fees. We didn't. We chose a lovely house that we don't intend to move from for years and years!


The interest free credit was a no brainer. I could take the view that I could drop dead tomorrow, get a horrible illness etc but life really is too short. I could lose my job but after so many years its very unlikely and the redundancy payments would more than make up for it. We are so close to the end of the school fees years and there is no way I will move my son in his GCSE year to the state system because someone makes a knee jerk response to a short term issue.


Thank you to all that made sensible suggestions. I am wondering if we should have kept a £50k mortgage running but honestly there were a few people after this house and without a mortgage we were in a very strong position.

redpete

moneycantbuyyoulove wrote: »

It makes me slightly uncomfortable that this poster seems to be being judged for having a high income and a sizeable property. Surely, if someone is asking for advice, that is all.

I'm not sure why some go to the bother to search for old posts previously made - how is this relevant other than to try to cast doubt and bad feeling?

Financial hardship can hit anyone and it's all relative. Generally, the higher the income, the higher the outgoings - people usually live to their means. Nothing wrong with that.

I think they're getting judged for not being able to pay 10s of thousands for absolutely foreseeable school fee debts twice in a short period.

And needing a 5 yr loan to cover a "short-term cash flow problem" and considering money owed on 0% cards as not really 'debt' doesn't tell me they really understand the situation.

leespot

The answer lies in your property. You were in a rush to buy it as it was so popular so you bought it without a mortgage? Now that you have the property with so much equity, you can easily borrow what you need against it to get your child through school.

bobcat2

If you have a net monthly income of over £10K and no mortgage, where is all you cash going? Why would you need to borrow £20k over 5 years? None of this adds up..
It should be pretty easy to get an unsecured loan of that amount but why do you need to with that income?

ReadingTim

I can perfectly understand how the tactical advantage of purchasing a property mortgage free (and the psychological benefit - making that last mortgage payment is a massive relief), together with the cost of furnishing said property can lead to temporary cash flow issues.

Problem is that regardless of the source of the proposed borrowing (unsecured personal loan, remortgage), your current level of disposable income doesn't seem likely to permit your to borrow the sums you're looking to borrow. If the "complex" bit is that you're looking for some sort of loan which provides you with the funds now, but with no repayments for 6 months/one/two or five years time, then you're likely to be disappointed.

Without further information it's impossible to give advice, but you really need to look at your outgoings vs your income, especially if that income were to drop - for example if the deferred bonus doesn't pay out - in short, you need to be a bit more risk averse!