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Take out one big loan, or two smaller loans
Hi,
My wife and I are planning to carry out home improvements amounting to 33k beginning early next year, we have about 8k in savings and so will need to borrow about 25k. Borrowing against the house is not an option here unfortunately as they will not lend over 85% of the value which is basically where we are.
The payment schedule looks something like this:
2k this week
13k end Jan/beginning Feb
17k around June/July 2018
4k July/Aug 2018
Question 1. Should we look to borrow the full 25k now, even though we may not need all that money (hopefully will have made additional savings contributed by July, and also planning to stooze some money before then) Or should we borrow a smaller amount for now, e.g. 15k now and another 10k around May/June?
Question 2. Would we expect to get a better rate by applying jointly (we both have fairly good credit scores or would that not matter?
My wife and I are planning to carry out home improvements amounting to 33k beginning early next year, we have about 8k in savings and so will need to borrow about 25k. Borrowing against the house is not an option here unfortunately as they will not lend over 85% of the value which is basically where we are.
The payment schedule looks something like this:
2k this week
13k end Jan/beginning Feb
17k around June/July 2018
4k July/Aug 2018
Question 1. Should we look to borrow the full 25k now, even though we may not need all that money (hopefully will have made additional savings contributed by July, and also planning to stooze some money before then) Or should we borrow a smaller amount for now, e.g. 15k now and another 10k around May/June?
Question 2. Would we expect to get a better rate by applying jointly (we both have fairly good credit scores or would that not matter?
0
Comments
-
Your scores won't make a difference. Only your credit history and income.
What shape are both in?0 -
wouldn't start / authorise the work before finance is in place (i.e. £2K this week)0
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