Best way of borrowing £40,000

BrassicWoman

dld2s wrote: »

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?

It's more "I can easily afford a paymnt of xx", but haven't been able to put away xx a month.

Crumble_

Yes I’ve put £250 holding money down of a £5,000 deposit for the car

Maybe I’ve written the post wrong but the house comes first no question. As soon as the contracts have been exchanged then I will apply for the loan and the car finance.

Crumble_

dealer_wins wrote: »

Amazing how people want to borrow £1000s , but dont have a penny in savings. Yet they think it will end well.

I have saved up £14,000, but with house deposit, solicitors fees, stamp duty as it is a second home and structural survey (work that was needed) and money for the car deposit ... it leaves me very little in way of doing it up

Crumble_

tacpot12 wrote: »

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.

I’ll be renting my apartment out for nearly double what I currently pay for it. I’ve fully paid off 1 loan which was £275 a month and payment protection I’ve looked into around £25 a month

Pixie5740

Sainsubrys offer personal loans of £40,000 with a representative APR of 7%. First Direct offer personal loans of £50,000 with a representative rate of 6.7%. On the face of it, it would appear that getting two smaller loans would attract less interest....IF you could successfully apply for two separate loans and IF you are one of the 51% who are offered the representative rate or at least one of the 49% who are offered something close to it.

DCFC79

Just remember you aren't guaranteed to get the headline rate, you could be offered a higher rate.

foxy-stoat

Crumble_ wrote: »

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

The only people who could get a loan for £40,000 will be earning over £80,000 a year which I would assume isn't you so you need to have a serious re-think as you wont get that amount of credit.

Nasqueron

Buy a cheap banger for a couple of years and knock this nonsense of debt for a birthday party and do your home in stages, what's wrong with a bit of DIY paint etc to keep you going then look in a few years when you know your finances are steady?

dealer_wins

Nasqueron wrote: »

Buy a cheap banger for a couple of years and knock this nonsense of debt for a birthday party and do your home in stages, what's wrong with a bit of DIY paint etc to keep you going then look in a few years when you know your finances are steady?

Way too last century and sensible for todays attitudes to debt!!

Crumble_

foxy-stoat wrote: »

The only people who could get a loan for £40,000 will be earning over £80,000 a year which I would assume isn't you so you need to have a serious re-think as you wont get that amount of credit.

I’m not at 80 yet, just over 50. May have to be a smaller loan and then see what I can get on top of that. Or smaller loan and a credit card on 0%