Short-term borrowing

Stan_Butler

I've been living in my current house for several years. The building is in good repair, but the gardens, fences, driveway etc are shabby and need attention. The whole curtilage area is large, so it will involve a good deal of work. I reckon around £20-30k's worth.

We are OK financially - healthy credit record etc - but without being minted. I certainly don't have £20-30k kicking around.

I am due to retire next July after a long career and will receive a decent lump sum. I will pay off the mortgage with that sum. I had also intended to use it for the renovation work identified above.

But … I have a lot of time on my hands currently as my career winds down, and I (and the wife!) are keen to get the renovation work started now, not least because the affected areas are beginning to look really untidy.

I don't particularly want to borrow extra on my mortgage, as I intend to pay it off in July, and taking on a new mortgage deal now seems a bit silly. Anyway, an extra couple of hundred pounds a month on the mortgage repayments would really stretch things for us, even if it's only until my retirement (and lump sum) next July.

So I am wondering - is there any type of bank loan or scheme where I could get the money immediately and then pay it back in July (which I could do in one hit if necessary). A sort of 'Borrow Now, Pay Later' arrangement. So the first few months are deferred. Or something along those lines? And, if so, what might be the best option?

I've never taken out a personal loan before (outside of the mortgage), hence a bit of a novice.

Thanks.

Nasqueron

Almost all personal loans allow early repayment to clear the balance and pay off interest, they can charge an early repayment fee.

The only caveat I would say is that you have to declare you are retiring as that will affect affordability, you would need to consider your retirement income as well for the repayment just in case you couldn't pay off the mortgage or the retirement money isn't paid etc

GrumpyDil

But to answer the specific question I don't think personal loans normally allow you not to start making payments straight away.

jackieblack

Are you planning on doing all the work before you retire? Or just make a start with one or two jobs?

If so, would a 0% credit card work just for the materials etc that you need before next July? Then you could pay it off and get the rest of the work done once you've retired

redux

https://forums.moneysavingexpert.com/discussion/comment/82163576#Comment_82163576

Well, it would presumably be possible to overborrow more than the expected spend, and pay the first few months from the remainder, but I don't quite see the attraction of burning to get on with it.

It seems to me that some of that type of work would be more convenient in the summer than in autumn and winter, whether by the owner or other people coming in.

For the OP, can you really not resist a few months longer? Or borrow half the amount, just do one job and not the others yet; it sounds like 2 or 3 separate contractors anyway.

(It's a bit of a blustery day, and some more showers coming soon on the rain radar. That's probably affecting my thinking, nice day to be lazy and stay indoors half the time.)

Stan_Butler

https://forums.moneysavingexpert.com/discussion/comment/82163579#Comment_82163579

Thanks. I won't get all of the work done before retirement, but I'd like to get quite a bit of it done - or at least under way. Never had a credit card before, but I'll look into the suggestion.

Stan_Butler

https://forums.moneysavingexpert.com/discussion/comment/82163586#Comment_82163586

That's a fair point, but the affected areas are in a really poor state. In the last couple of years we've had fences fall down, large hedges die, drainage issues with the driveway, and a ton of other stuff. It's looking shabby. We look out onto the main road too, so it's sort of affecting the community aesthetics!

sammyjammy

https://forums.moneysavingexpert.com/discussion/comment/82163594#Comment_82163594

You'll need to look at a card that lets you do a money transfer, try MBNA or Virgin

MasterG83

As an anti-debt campaigner for any reason, consumer debt particularly I wouldn't borrow to start this work early. I would wait until the money has "dropped", circumstances can change. By all means get busy and pay for a skip and start clearing things yourself, keeps you active, busy, debt free, then go for it once you have the money. And dont give it all up front to a landscaper etc, agree a staged payments process.

jackieblack

https://forums.moneysavingexpert.com/discussion/comment/82163608#Comment_82163608

Not necessarily, if they're doing the work themselves and just buying materials,

kimwp

If an increase of a couple of hundred pounds month would really stretch things, you don't sound as financially healthy as you think. I would caution you to not add borrowing to this picture.