Loan when medically retired

edited 31 January 2020 at 4:01PM in Loans
4 replies 502 views
mrcol1000mrcol1000 Forumite
4.8K Posts
Part of the Furniture 1,000 Posts
edited 31 January 2020 at 4:01PM in Loans
A few years ago my employer retired me due to my health. The doctor declared that I would be unable to ever work full time again and so I was entitled to a full ill health pension from my employers pension fund for life.

This pension is my only source of income other than PIP and contribution based ESA.My wife gets carers allowance for caring for me and is self employed but gets very little income through that. She doesn't even earn enough to pay NI.

We have been putting of replacing our kitchen due to my health but am coping with things better and prepared for the huge upheaval have to deal with now.

We have half the money in savings and was going to put the other half on a credit card and worked out we could comfortably pay it off in three years. However thinking that would be the expensive way to do it so thinking of getting a loan instead. Loan calculators show we could pay this off in two. The reason was going to put it on an existing credit card as worried that getting a loan would be impossible in current situation without having to go to a company that would charge a lot more than a credit card.

I just wondered if anyone could help me with some questions?

1) What do I put as my status? I am retired but under 40 so that seems like it would flag up in an application. I am unemployed but not on any means tested benefits.
2) Who in reality would give me a loan? I have tried the eligibility checker on MSE and it looks like no-one would. I have an excellent credit record with no defaults but guessing am failing on affordability. I don't want to try and get loans and be turned down and screw up my credit record.
3) Can I list my PIP and ESA in my income or should benefits be excluded?

We have shopped around and found a good deal. We need a new kitchen as its been patched up over the years but now needs replacing. An alternative is to go with Wren who would do it slightly more expensive but would offer 0% interest even in my situation. We just didn't really like dealing with them as they are so pushy but would if we had to.

Thanks in advance for anyone's help or suggestions


  • sourcratessourcrates Forumite, Board Guide
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    When you say "new kitchen" what do you mean exactly, new cupboards/cabinets/worktops etc, are you replacing your white goods too ?
    The reason i ask, is that the majority of kitchen cabinets are all made of the same MDF, (unless your buying a hardwood kitchen) the only real difference is the colour/pattern on the doors/handles etc.

    Places like homebase and B&Q are about the cheapest, why get into debt for a kitchen, i am guessing your buying there fitting service as well, mine came from a DIY store, cost £600, and is still looking good 13 years later.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
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    Whatever you do please do not go with Wren...there are countless threads on MSE about how bad they are.
  • mrcol1000mrcol1000 Forumite
    4.8K Posts
    Part of the Furniture 1,000 Posts
    Yeah its going to be new kitchen as in units, rewire, decoration and floor. Keeping the appliances till paid kitchen off. Its a local kitchen place who are doing the units at cost because of all the other work we want them to do.
  • [Deleted User][Deleted User]
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    Fifth Anniversary 1,000 Posts Name Dropper I've been Money Tipped!
    MoneySaving Newbie
    The only problem I see with a loan is that you won't know the interest rate until you apply and it would be unlikely you would get the "headline"rate, they don't usually allow you to include benefits as income now as they come and go, have you considered having new door and draw fronts and worktop?
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