Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • Gareth43
    • By Gareth43 4th Dec 17, 9:52 AM
    • 6Posts
    • 1Thanks
    Gareth43
    Prestige finance
    • #1
    • 4th Dec 17, 9:52 AM
    Prestige finance 4th Dec 17 at 9:52 AM
    Hello
    I'm in the process of taking out a second charge secured loan with prestige finance for home improvements, I'm ok with the initial interest rate which is fixed for 5 years but after that it becomes variable and I am concerned they will be able to change it whenever they want. I plan on changing my current mortgage in 5 years when my partner goes back to work full time as we will then be able to afford to remortgage for the cost of our current balance and the 65,000 I am borrowing from prestige finance, this way I don't have the loan for 25 years with prestige and I am not at the mercy of their interest rates. I have bad credit so not a lot of options available to me. Any advice?
Page 1
    • poppasmurf_bewdley
    • By poppasmurf_bewdley 4th Dec 17, 10:00 AM
    • 5,190 Posts
    • 5,310 Thanks
    poppasmurf_bewdley
    • #2
    • 4th Dec 17, 10:00 AM
    • #2
    • 4th Dec 17, 10:00 AM
    Before anyone can give you any advice, why are you needing a 65K loan at a probably very high rate, especially as you have admitted to having a trashed credit file?
    "There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock
    • Herzlos
    • By Herzlos 4th Dec 17, 10:27 AM
    • 7,225 Posts
    • 6,495 Thanks
    Herzlos
    • #3
    • 4th Dec 17, 10:27 AM
    • #3
    • 4th Dec 17, 10:27 AM
    65k is a hell of a lot for home improvements. Do you really need to do it now and not in 5 years?

    Presumably this in an extension due to having a baby or something?
    • Gareth43
    • By Gareth43 4th Dec 17, 11:52 AM
    • 6 Posts
    • 1 Thanks
    Gareth43
    • #4
    • 4th Dec 17, 11:52 AM
    • #4
    • 4th Dec 17, 11:52 AM
    Replay to both the loan is high yes but I am consolidating 15k in debt ( car finance and a old loan) both frees up 600pm, the remainder of the loan is for major works to my house, re-pointing, sort the roof out and some other work unfortunately all the bits that need doing are costly big jobs and delaying now will only cost more in putting right at a later stage.
    • PeacefulWaters
    • By PeacefulWaters 4th Dec 17, 12:21 PM
    • 8,320 Posts
    • 10,638 Thanks
    PeacefulWaters
    • #5
    • 4th Dec 17, 12:21 PM
    • #5
    • 4th Dec 17, 12:21 PM
    You have five years to get a grip on your credit file.

    Use the 600 "freed up" to reduce debt.
    • fwor
    • By fwor 4th Dec 17, 12:25 PM
    • 5,993 Posts
    • 4,049 Thanks
    fwor
    • #6
    • 4th Dec 17, 12:25 PM
    • #6
    • 4th Dec 17, 12:25 PM
    I am consolidating 15k in debt ( car finance and a old loan)
    Originally posted by Gareth43
    You would be converting what are probably unsecured debts into part of a big debt secured on your house. This is not generally considered to be a good idea, because if something goes wrong (redundancy for example) you will probably lose the house.

    In your situation, I would borrow a smaller amount to do the time-critical things (roof and, possibly repointing, though often the latter is more cosmetic than structural) and do the rest in stages as you can afford them. Doing it all in a big lump now will be very expensive if all you can get are high rate loans.
    • iolanthe07
    • By iolanthe07 4th Dec 17, 2:50 PM
    • 5,011 Posts
    • 4,706 Thanks
    iolanthe07
    • #7
    • 4th Dec 17, 2:50 PM
    • #7
    • 4th Dec 17, 2:50 PM
    Variable interest rates always seem to vary only one way - up.
    I used to think that good grammar is important, but now I know that good wine is importanter.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

211Posts Today

4,029Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line? https://t.co/kwjvtd75YU

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin