Discussion in 'SMB' started by Casper, Apr 15, 2019.

  1. Casper

    Casper Goalkeeper

    Looking for some advice.

    Bought a house last year and looking to do an extension. Put 15% deposit down initially. Looking at borrowing £25k.

    Spoke to mortgage company about releasing some equity but that's not an option it seems as LTV isn't below 80%.

    Naturally we will build the equity before the fixed rate runs out in 5 years.

    Is there any finance option that doesn't have your eyes out (other than parents loaning) that could be paid off in full within 5 years?
  2. Curlyteeth

    Curlyteeth Goalkeeper

    We had a loan from sainsbury when we had our kitchen done. Think it was 6 years pay off
  3. Rueben Agboula

    Rueben Agboula Midfield

    25k within cca regulations so can borrow unsecured. Think max term is 7 years
    HABA87 likes this.
  4. Casper

    Casper Goalkeeper

    What does that mean mate?
  5. Joe Public

    Joe Public Striker

    Repayments over 5 years will be over £500, can you afford that alongside your current outgoings?
  6. Casper

    Casper Goalkeeper

    Yeah just looked at an online calculator, unsure as to what the best option is to be honest
  7. Joe Public

    Joe Public Striker

    Would your current mortgage provider not provide you with a lower rate loan?
  8. Casper

    Casper Goalkeeper

    Just spoken to them and it appears not 17% apr which seems high to me!?
  9. Curlyteeth

    Curlyteeth Goalkeeper

    When we looked at it, Tesco and sainsbury were the best, although we borrowed a lot. Usually there are online sites telling you the best none secured loan deals

    Like this
    Cheap Personal Loans
    Last edited: Apr 15, 2019
    hypersonic likes this.
  10. MarcoGoalo

    MarcoGoalo Striker

    Going off memory from when I was in banking, if its for home improvements then anything over iirc 15k could be over a 10yr term, but I suppose its all down to the lender.
  11. Lambchops

    Lambchops Striker

    Use the cash you were planning on paying any loan with to overpay your mortgage, get the ltv down then bang it on there
    Qwerty, D.A, Epping and 1 other person like this.
  12. Look at peer to peer lenders like zopa
  13. HABA87

    HABA87 Winger

    17% is a joke. I dread to think what you would pay in interest as I don't know how long you're wanting it over.

    Get your overpayments in, get your LTV down and slap it on the mortgage at under 3%.

    That's if you can wait.
  14. Longy

    Longy Striker

    He’d be better off hoying it in a savings account so it’s liquid. There’s a multitude of things that could go the wrong way & mean he can’t get the equity back out.

    Some banks will let you do an unsecured loan over 10 years if you want to stretch it out, but the interest rate will be higher. Unsecured loans are quite common for £25k over 5 years if you can afford the payments.

    I also know some will extend your mortgage to 85% LTV if it doesn’t have any element of debt consolidation involved. However sounds like it’s irrelevant to you if your lender’s already said no & you’re in a 5 year fix.
    Last edited: Apr 15, 2019
  15. Lambchops

    Lambchops Striker

    Would get the cash quicker my way
  16. Longy

    Longy Striker

    Eh? How? He’d be tying it up to apply to get it back.

    Are you wooshing me you little tinker?!
  17. Goat Eyes

    Goat Eyes Striker

    If he has to save 25k that’s going to take him 5/10 years.

    To reduce his LTV by about 5% to take him below the 80% with over payments will take him less time.
    Lambchops likes this.
  18. Casper

    Casper Goalkeeper

    That makes sense, hopefully the house value will rise also to help matters
    Goat Eyes likes this.
  19. Dave Herbal

    Dave Herbal Striker

    Perhaps you should have bought a bigger house in the first place?
    D.A and Goat Eyes like this.
  20. Whack your figures in here and hope that Yorkshire Bank / TheAA come back with a 2.9% offer over 6 years.
    No hit on your credit score for the check and gives you a ballpark idea of whether or not you'll be accepted.
    Loans eligibility calculator - MoneySavingExpert

    This guy knows ;)
    Last edited: Apr 16, 2019

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