Multiple purpose loan

Bert85

Hi everyone
I have a couple of questions about taking a loan.
First of all, I am considering taking a loan to replace my car - it won't pass the MOT I am sure - and to refurbish the bathroom. Over a 7 years term, with my credit score of 989 (Experian), if I usedcused AAcAA, it could come up payments of about £330/month for 7years. My gross wage is over 33k (due to increase to 37k in April) and my mortgage is £475/month
First of all, can I ask a loan for different purposes?
Do you think I could be approved?

Many thanks

bonkersbonkers1

Yes you can ask for a loan for different purposes.
Whether you get accepted and at what rate - we do not know. Only applying for the loan will give you the answer.

DrEskimo

How much are you borrowing and why over such a long term?

Have you been able to save £330/month up until now? If not, I would recommend you do that for a year or so before getting yourself in a position of paying ~£27k towards debt for the next 7yrs....

Bert85

@DrEskimo the total to borrow is £25k. This will include a used car, new bathroom, 2x new windows, plasterer to finish big part of the refurbish at home.
I think 3.3% -IF this were the case- it is not a lot, and will solve a lot of issues at home + piece of mind. I think £330/month is less than what I have save/spent for carrying on refurbish works during the last year. But now I need peace of mind and finish works, stay with my family and be sure of how much to pay per month. Does it make sense? Do you have any other advice or ideas in your mind? If yes, please share them with me

MallyGirl

I think you will struggle to borrow £25k on a salary of £33k.
i would maybe try to space things out a bit rather than doing it all at once. If the current bathroom is usable I would live with that while you pay off a smaller loan for the car (and maybe the windows depending upon how bad they are) over a shorter period of time.

DCFC79

Your credit rating tells us nothing about how your history is.
Whether we think you will get approved means sod all, you need to apply.

DrEskimo

Bert85 said:

@DrEskimo the total to borrow is £25k. This will include a used car, new bathroom, 2x new windows, plasterer to finish big part of the refurbish at home.
I think 3.3% -IF this were the case- it is not a lot, and will solve a lot of issues at home + piece of mind. I think £330/month is less than what I have save/spent for carrying on refurbish works during the last year. But now I need peace of mind and finish works, stay with my family and be sure of how much to pay per month. Does it make sense? Do you have any other advice or ideas in your mind? If yes, please share them with me

As @MallyGirl suggests, I think you're going to struggle to get accepted for a loan given your salary, so I think you are going to have to come up with another idea. It certainly seems a big ask to get it at the headline rate...

I would keep your car and just repair whatever needs repairing. It will be cheaper than finance and deprecation on a replacement car.

Divide up the work that needs doing in the house in order of priority. Aim to save the £330/month that you were going to spend on the loan and do the work as and when you can. You could look at 0% CC and smaller loans to get urgent work but you need to factor in the financial risk that borrowing comes with. No one plans to get into financial difficulties. It can happen to anyone at anytime and it's about having the right things in place so that you can deal with it (e.g. emergency funds, no debt, etc.).

Bert85

@DrEskimo I understand, but I cannot have still works going on in my house with my 1 year old son. Moreover, my car is beyond repair, unless I want to spend more money than the car.
And about that, the car dealership - used car - proposed me a £295/month PCP for 4 years, I do not want to have a PCP since I would like to own the car outright. What is the big difference between monthly payments of £295 and £330?

Grumpy_chap

OP - What is your current mortgage position?  Is extending your mortgage an option for the home improvements?

How much of the £25k is for a car and can you simply purchase an older cheaper car?

[Deleted User]

Bert85 said:

What is the big difference between monthly payments of £295 and £330?

£35 and a higher risk on the large amount.

DCFC79

Maybe you need to consider going for a cheaper car and maybe reduce the cost of the items for the bathroom.