Best Way to Finance New Kitchen?

Hi. We are looking to get a new kitchen and our preferred retailer doesn't offer 0% finance. We have a bit of cash available which will cover things like a new boiler etc., but will need to borrow to cover the kitchen and install. I would imagine we will look to borrow around £10k. What is the best/cheapest way to finance this? Is it possible to put the kitchen on a 0% interest credit card initially to avoid paying interest for this initial period (12-24 months depending on card), pay off £X per month over this period, and then take out a personal loan to pay off the rest of the credit card over a longer period once the 0% interest period has ended? We may need to take out an initial loan to pay the builder/kitchen fitter anyway?Thanks.


  • CliveOfIndia
    CliveOfIndia Posts: 1,378 Forumite
    First Anniversary First Post Name Dropper
    edited 22 February 2023 at 12:32PM
    There are a few options to explore.  Obviously the true MSE approach is to save up beforehand and not have to use credit of any kind :)
    But in terms of credit options, yes you could use a 0% purchase credit card - assuming you're given a high enough limit, and assuming the supplier will accept credit cards.  Or else a money transfer card if the installer won't accept credit cards (there's usually a fee to pay for this, and again it assumes you're accepted for a high enough limit).
    In either case, when the 0% deal expires you can hopefully transfer any remaining balance to another 0% card - although there's no guarantee that you'll be able to do this, so you do need a backup plan.  A loan is the obvious answer - but what happens if you're not accepted for a loan, or if you're offered a very high rate of interest?
    The "safest" option may be to just get a loan for the whole lot from the outset - at least then you know that you've got a fixed amount to pay each month and can budget accordingly.  Obviously it's attractive to have a period of interest-free credit, via credit cards, for the first year or so, if you're able to do so.  But you then introduce the risk of not knowing what rates you'll be able to secure when you need to refinance the cards with another loan.  Pros and cons.

    <Edit to add>  The big fly in the ointment with planning to use a credit card initially then getting a loan later on to clear it is affordability.  When you come to apply for the loan, the lender has to assume that the loan will be in addition to, not instead of, your existing credit card debt.  They have no way to guarantee you would actually use the loan to repay the credit card.  So when they run their affordability checks, you may find you run into problems.
  • ratrace
    ratrace Posts: 1,009 Forumite
    First Anniversary Name Dropper First Post
    You may not want to hear this but i would not go into debt for a kitchen especially £10k's worth. if you really need a kitchen due to yours falling apart then i would look online on marketplaces there are lots on there in very good condition for a fraction of the price
    a family member wanted a new kitchen she paid about £12k all done and sold her old kitchen which was still in very good nick for £250 a couple came and took it away, my family members husband was not happy and category told her that she will have to pay it off on her own hes very debt averse (after seeing his folks in debt for years struggling) the compliments have stopped coming but the debt is still there and she is regretting it now

    moral of the story save and pay in cash yes it takes longer but is worth the sacrifice.

    People are caught up in an egotistic artificial rat race to display a false image to society. We want the biggest house, fanciest car, and we don't mind paying the sky high mortgage to put up that show. We sacrifice our biggest assets our health and time, We feel happy when we see people look up to us and see how successful we are”

    Rat Race
  • MEM62
    MEM62 Posts: 4,752 Forumite
    First Anniversary Name Dropper First Post
    Best Way to Finance new Kitchen?

    From savings is the obvious answer.  Borrowing money at the moment with higher interest rates, tighter lending criterion and difficult fiscal times might not be the best course of action.    
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