Best way of borrowing £40,000

Crumble_

So I am after £40,000 to renovate a house which I have just bought, put a deposit down on a car and pay for a significant birthday.

Looking to pay it off over 7-10 years initially but will over pay it to get rid quicker.

Mastheaven looking good but is this secured against your property? I wouldn’t have enough equity in it to be accepted.

Don’t want to change the mortgage offer at this stage either.

Two loans of £20.000?

Thanks in advance

Edi81

Sounds as if you haven!!!8217;t bought the house yet.
DO NOT APPLY FOR CREDIT UNTIL YOU HAVE MOVED IN!

Edi81

Actually, just read your other thread where you have already been told that.

There is no telling some people...

jonesMUFCforever

Edi81 wrote: »

Sounds as if you haven!!!8217;t bought the house yet.
DO NOT APPLY FOR CREDIT UNTIL YOU HAVE MOVED IN!

I read the post as the house is already bought with a deposit put down on a car.

Crumble_

I’m not applying for anything until contracts are exchanged. It’s called planning ..

Crumble_

House is due to complete next week

Crumble_

Home improvement loan will come first.

Then the car deposit and monthly payments second

jonesMUFCforever

Crumble_ wrote: »

I’m not applying for anything until contracts are exchanged. It’s called planning ..

Exchange of contracts is not good enough - do not apply until you complete ie the mortgage company has given your solicitor the money to pay.

Lungboy

Crumble_ wrote: »

Home improvement loan will come first.

Then the car deposit and monthly payments second

In your other thread you say you've already put down the car deposit:

Crumble_ wrote: »

Right, help please.

Buying a family property which is my grandmas name but in power of attorney in my mums name.

Mortgage offered by Santander last week and now waiting for searches and contract to be sent from my mums solicitor.

Meanwhile I need to get a home improvement loan to sort the house out as it's a bit of a state and want to crack on soon as so I can get the builders in and be in by the end of August.

Also on going is a car which I've put a deposit down but the dealers are now mithering when I can go through with the finance as it's been on hold for 3 weeks awaiting house things.

Is it wise for me to apply for the home improvement loan and car finance before contracts are exchanged? House valued at £90,000 I've got it for £75,000. Credit checks done and no conditions on the mortgage imposed by Santander.

tacpot12

Can you afford the repayments on the mortgage and a loan of £40,000? Do you have Income Protection Insurance in place that will cover these repayments and all your other essential outgoings if you cannot work?

If the answer is No to either of these, you need to consider borrowing less money. The renovations can probably be staged to some degree, the car purchase postponed and the birthday celebration scaled down.

If you still need to borrow more than £25,000, you will have to apply for one loan and wait until it has been approved and then apply for another loan for the remaining amount. Whether you are approved for it will depend on the loan company's lending criteria.

dld2s

I would think majority of people (not all) who need a loan don't have much in the way of savings hence the need for a loan?