Mr Whippy
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| posted on 13/2/17 at 12:56 PM |
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House loan question
Hi,
I'm sure many of you have done something similar so thought I'd asked here as usual.
Basically I'm wanting to down size the house from the current 6 bedroom to one with 4 in the same neighbourhood. I don't have a mortgage
or any loans, both me and herself work full time but probably need somewhere around 25-30k to pull the 10 year old house I built up to a standard
I'd want to then put it on the market (new kitchen, carpets, bathroom suites etc... ) the deadline I've set myself is a year from now and
the house should sell quickly due to it's location.
Went to the bank at lunch time to see if I could get a home improvement mortgage but their not interested as I don't already have a mortgage and
I only intend to use it till it's sold. They suggested I spoke to my solicitor (why does everyone assume I have a solicitor?! do you get them
free in a packet of Frosties or something...) well I don't have one of those.
Not sure now...any other more useful suggestions from you guys??
Cheers.
[Edited on 13/2/17 by Mr Whippy]
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ReMan
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| posted on 13/2/17 at 01:11 PM |
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I think the norm is a home improvement LOAN, rather than a mortgage and I'm sure most banks will fall over themselves to give you one.
The difrrffrence will be the interest rate, but if its only for one year and you make sure you get one where you can bail out without big penalties
you arent6 going to pay that much interest
www.plusnine.co.uk
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Mr Whippy
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| posted on 13/2/17 at 01:23 PM |
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Cheers, will look into that 
The bank person suggested a bridging loan but looking at that seems to be the worst possible advice!
I may also have the option of the bank of mum & dad...may need a word with them  all else fails I could buy everything on interest free credit
cards  hee hee
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adampage
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| posted on 13/2/17 at 02:08 PM |
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Bridging is completely stupid in your position...
I can't believe they said that....
Maybe they just don't get the idea you have no mortgage!
As said above, just get a Personal Loan, about 3-3.5% int.
Clydesdale, Yorkshire Bank, Ratesetter, AA, Sainsbury's Bank, Zopa, Post Office, Natwest, you name it, they have it.
£25k over 3 years, payments just over £700, so total repayment about £26,500 assuming you let it run the full 3 yrs, maybe less if you repay early*.
Or payments about £1,075-1,100 and total £25,800 if 2 year term.
*(Most have an Early Repayment Charge, but some don't like Lending Works)
Good luck!
Ad
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nick205
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| posted on 13/2/17 at 03:21 PM |
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Bridging loan seems the wrong thing to me!
We've just extended our mortgage for home improvements. Lender was happy to do so, but then we already had a mortgage with them. I'm no
financial adviser, but a loan would seem the best bet for you. As above check the fine print first to avoid getting tied up in it. Another approach
may be a credit card and transfer the debt to different cards over time.
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ian locostzx9rc2
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| posted on 13/2/17 at 05:10 PM |
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Just get a personal loan normally around 3.5 percent over approx 8 years to keep the payments low then pay it off early check the small print for
penalties etc ... cheapest and simplest way to do it with no up front fees or solicitors involved ..
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Toprivetguns
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| posted on 13/2/17 at 05:36 PM |
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First thing, check your credit score. With no mortgage only your credit card and phone bill will be showing that your spending responsibly. I'd
also go for an unsecured loan so it's not tied into my home. Good luck.
Only drive as fast as your angel can fly... !
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joneh
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| posted on 13/2/17 at 07:59 PM |
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Why pay interest on a loan?
I got a 24 month interest free credit card from Virgin. I bought a Jeep, new fire place and an operation on it. Spent about 14K. Just pay the minimum
each month and ensure you pay it off when you sell after a year.
The best part is I opened it via topcashback and got £60. They paid me to borrow money. I guess they count on you not being able to clear it so you
need good self control!
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Chris_Xtreme
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| posted on 14/2/17 at 12:27 AM |
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I'd be asking your local estate agent to advise if it is worth doing the work, you might find you wont get your money back on it, in such a
short time.
however, just because I bank with them and they don't come up on the comparison sites and I've always found them really good:
https://www1.firstdirect.com/1/2/loans-and-cards/personal-loans
seems to read (read the small print tho!) that you can over pay.
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CosKev3
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| posted on 14/2/17 at 08:09 AM |
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quote:
Originally posted by Chris_Xtreme
I'd be asking your local estate agent to advise if it is worth doing the work, you might find you wont get your money back on it, in such a
short time.
I would do that too.
Also knocking off the sale price what you are going to spend on the house will probably open you up to a much larger market.
Buyers also then can make the house there own(a lot would rip out what you fit new anyway to do so)
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nick205
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| posted on 14/2/17 at 09:03 AM |
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quote:
Originally posted by CosKev3
quote:
Originally posted by Chris_Xtreme
I'd be asking your local estate agent to advise if it is worth doing the work, you might find you wont get your money back on it, in such a
short time.
I would do that too.
Also knocking off the sale price what you are going to spend on the house will probably open you up to a much larger market.
Buyers also then can make the house there own(a lot would rip out what you fit new anyway to do so)
True - we looked at a few houses locally (knowing we couldn't afford them) to see what you got for your money. Each one gave us a list of
"rip-outs" rather than "oooh I like that's". Other peoples taste/style is always different and they'll be working
out the cost of re-doing whatever you've done with the money.
Sell at a lower price and sell faster I guess.
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