Loan Query

swifty2013

Hi everyone,


I am about to apply for a personal loan of £12,000 paying 2.8% APR.



Me and my partner are paying off our wedding plsu the honeymoon which would leave us around £4,000 left which we intend to use on our house in the near future.


I just wanted to ask if anyone has any advice on the £4,000 we have left sitting there for a while to gain any interest if we transferred it an ISA or a regular savings account?


Best wishes

[Deleted User]

I'd only borrow what you need. It will make it easier to be accepted and get close to the headline rate. Then look to borrow at a cheaper rate nearer the time

Is the in consolidating existing wedding debt, or is it for future payments?

redpete

swifty2013 wrote: »

Me and my partner are paying off our wedding plsu the honeymoon

Not wise to consider taking out a loan is 'paying off' anything. You still owe the money.

Do you know that you will get the loan at 2.8% or is this the advertised rate? If the latter there is no guarantee that you will get this low rate.

There is advice on this site here on best easy access or fixed term savings accounts if you are determined to borrow the extra £4000.

Sncjw

They will take in account of your loan amount when you apply for a mortgage so that means you could get less than you would have without a loan on your file.

Don’t start married life in debt.

dresdendave

Sncjw wrote: »

Don’t start married life in debt.

Excellent advice but sadly too late to benefit the OP.

foxy-stoat

redpete wrote: »

Do you know that you will get the loan at 2.8% or is this the advertised rate? If the latter there is no guarantee that you will get this low rate.

I wager not, they will start another rant thread that they have been offered 5.2% and what the heck is going on......

Nasqueron

You could get decent interest on that money in bank accounts with savings plans or those that pay a decent interest rate in current account


As above though, don't borrow for a marriage or honeymoon. If you can't afford it and haven't been able to save for it, do you really want to start married life with constant money worries and the inevitable arguments when you can't go out etc?

LarsVinter

A solution would be to skip your honeymoon or wait until you have more financial stability.

D_M_E

It reads as though the wedding and honeymoon have already taken place and the loan would be to pay off what is owed for the two events.

As said above, don't start off in deep debt - too late for that, you're already in it - try and pay off as much as you can and live frugally until it's all cleared.

The less debts you have when you apply for a mortgage the better your mortgage offer will be.

sarajames988

I suggest.. for the moment have the marriage and skip the honeymoon for a time or if you want to have both then can apply for the loan too. There are banks and money lenders who can help you.

Clive_Woody

sarajames988 wrote: »

I suggest.. for the moment have the marriage and skip the honeymoon for a time or if you want to have both then can apply for the loan too. There are banks and money lenders who can help you.

Let me guess, you know just such a lender? :j