0% finance with retailer or other option

Fab10

I am in the process of buying a new build which should be complete by Dec 2019.

I shall be completing my mortgage application in Sept/Oct.

Myself and my husband are buying a property for £350k putting down a deposit of £120k and taking a mortgage for £230k. (combined salary of myself and hubby = £44k per annum)

Once we get keys for the property we will be looking to furnish the property and hopefully get most of the products ie, Beds, TV, Furniture etc on the 0% for x months deals that the retailers offer. Estimating total for goods to be approx £15k

*** My concern is I don't know if it is wise to go thru several 0% finance applications with different retailers (whom I believe most actual use the same finance company) ?
*** Secondly can I gauge how much I may be able to get on 0% finance prior to going thru the applications and selecting the products?
*** Thirdly would you say this is okay to do would you recommend something better?

Any help is very much appreciated

MovingForwards

Commented on your other thread.

spadoosh

Sorry can i ask who your mortgage is with? We earn the same and i thought £200k would be our very top end, youve made me consider moving.

It depends on your situation. Sound like a FTB, and anecdottaly, found people where very keen to get me to borrow money as soon as we bought. I went from being what wouldve been a bad borrower (high interest deals) to someone who was offered 0% deals within months of buying.

Not really. You can work out how much you think you can afford each month then play it out with their 0% offer (ie over 3 years) to get an idea of what you might get. This will be completely dependent on your accuracy, you meeting the lenders requirements and you being realistic with your affordability.

I wouldnt recommend it. Furniture, these days, is a depreciating asset. Depending on the quality of what you buy, most of it could be worthless before youve finished paying it off. Its all very trend based and with things like that you could be 6/12 months behind the trend and save yourself half the money buying second hand. Theres the opportunity cost with things like this. Theres no arguing youll need furniture but committing to a monthly payment can very easily become regrettable once the novelty of the thing youve bought has worn off. Along with this circumstances change, children, a split, family needing help/care etc. None are very forgiving when it comes to repayment plans.

My friend has done it, he currently on his second bout of finance for his furniture. He bought some with his new house on a cheap deal. As soon as he paid it off he went out and bought more furniture because it was dated. Hes paying for furniture in perpetuity. He couldnt sell his last lot of furniture so i asked him if i could have it after helping him move his new stuff in and with a few DIY jobs, looks lovely in my living room :cool::o


If you want new furniture though and dont have money available, 0% finance will be one of the better ways of paying for it. How much youll get is up in the air. Id avoid any kind of interest bearing finance options. If you cant pay for it or get it on free tick, do without.

joedenise

I agree. Buy second hand until you can afford to buy new. We made the mistake of using 0% finance for our sofas a while back on a 4 year deal! We were fed up with the sofas by the time we'd paid for them, even though we overpaid so actually paid for them in just over 2 years.

Fab10

spadoosh wrote: »

Sorry can i ask who your mortgage is with? We earn the same and i thought £200k would be our very top end, youve made me consider moving.

Numbers are confirmed and in writing by the bank. Something that made a big difference was one person doing only a couple of days overtime a month - this counts as extra earnings and tops up the salary figures hence why figures are as they are

Picard91

Second hand Furniture is the way to go, as spadoosh said, new furniture will have dated by the time you pay it off... There are some real bargains to be had for good quality second hand furniture!!

Obviously if you dont want to do that, my preference would be 1 or 2 0% Credit Cards with a limit of how much you want to spend for everything, use that to buy it all and that way you already know your monthly repayments