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Loan for Home Improvements

rebel_2
rebel_2 Posts: 124 Forumite
Part of the Furniture 100 Posts Name Dropper Combo Breaker
Hi Guys
A friend needs a loan for home improvements, they need around £20,000. The problem is their income is just £6,000.
They are o.k. with a term of i.e. 10 years, they have a 'clean' credit history. They live with family, so very few monthly 'outgoings, just utility bills etc. They've had their bank account for over 20 years (they asked something else but I've forgot it). Could they get several small loans?
 Any advise would be appreciated. 
Thanks 




 



Comments

  • They won't get anything like that sum on that income, even if they were accepted, which is unlikely.

    Better that they save and do work as and when.
  • Caz3121
    Caz3121 Posts: 15,737 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    rebel_2 said:
    A friend needs a loan for home improvements, they need around £20,000. The problem is their income is just £6,000.
    They are o.k. with a term of i.e. 10 years, they have a 'clean' credit history. They live with family, so very few monthly 'outgoings, just utility bills etc.
    Who owns the home that they are looking to improve?
    It is not clear if this a mortgage free property that they own and have family living with or whether this is the families home that they live in....do they own a property elsewhere that they are looking to improve or are they looking to improve someone else's property?
  • maxsteam
    maxsteam Posts: 718 Forumite
    500 Posts First Anniversary Name Dropper Photogenic
    rebel_2 said:
    they need around £20,000.

    No. They don't "need" it and they are likely to have to manage without it.

    If there is some equity in the property, then that might act as security but there is not going to be the income to make the repayments. Even with a half-good interest rate, the repayment would be around 40% of income.

    They should study DIY.
  • DCFC79
    DCFC79 Posts: 40,614 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    What kind of improvements are we talking about ?
    The problem is I dont think they will be accepted for several small loans.
    If only a small amount of outgoings eg utility bills then what have they got saved up ?
  • Herzlos
    Herzlos Posts: 15,404 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Banks will only really loan up to 50% of income, and anyone going above that is going to charge crazy rates.
    Anyone is going to struggle making loan repayments with an income of £500/month.
    That's a pretty low salary for someone who needs to do home improvements; is it a pension? Do they own the house? Much equity?
    The only option I can see would be remortgaging but even then the income is going to hit affordability checks.
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