Best Perrsonal Loan recommendations for £10K

[BurblingBrownOne]

I need to borrow around £10,000 to cover some home improvements.
Any reccomendations?
Shouldnt need any payment breaks, but would like the option to be able to pay back early without incurring a penalty.
Looking for a 5 year repayment period to keep monthly costs low.

[Timmy35]

Well first off have you tried talking to your mortgage lender about an extension to your mortgage that WILL be the cheapest form of finance you'll get for home improvements if it's an opiton on your mortgage.

[anonymous-user]

Nationwide and a couple of others are doing 6.6% APR

Check out http://www.moneysupermarket.com/loans for details of what is available

[Timmy35]

Bluequay said:

Nationwide and a couple of others are doing 6.6% APR

Check out http://www.moneysupermarket.com/loans for details of what is available

Yeah, then you go into the branch, clean debt record, impeccable financials, and computer says 17.5% APR on your particular loan. Funny how no one actually seems to get the deal in the window....except maybe Jesus...and he doesn't need a loan being Gods son and all that.

[anonymous-user]

Timmy35 said:

Bluequay said:

Nationwide and a couple of others are doing 6.6% APR

Check out http://www.moneysupermarket.com/loans for details of what is available

Yeah, then you go into the branch, clean debt record, impeccable financials, and computer says 17.5% APR on your particular loan. Funny how no one actually seems to get the deal in the window....except maybe Jesus...and he doesn't need a loan being Gods son and all that.

That can of course happen, it used to be that 2/3rds of applications had to get that rate if advertised, they could reject or offer higher rates to the other 1/3rd. The EU has now helpfully reduced that figure to 51%. Working in our interests again!!

[Timmy35]

Bluequay said:

That can of course happen, it used to be that 2/3rds of applications had to get that rate if advertised, they could reject or offer higher rates to the other 1/3rd. The EU has now helpfully reduced that figure to 51%. Working in our interests again!!

Doesn't surpise me at all.

As said IMO the OPs first port of call should be to his mortgage provider who may well be happy to add the £10k onto his mortgage at the existing rate....for alot of people that'll be 2-3% at present. He'll get a better rate on a secured rather than unsecured loan.

[Sarnie]

Timmy35 said:

Doesn't surpise me at all.

As said IMO the OPs first port of call should be to his mortgage provider who may well be happy to add the £10k onto his mortgage at the existing rate....for alot of people that'll be 2-3% at present. He'll get a better rate on a secured rather than unsecured loan.

Over a much longer period.

[Timmy35]

Sarnie said:

Timmy35 said:

Doesn't surpise me at all.

As said IMO the OPs first port of call should be to his mortgage provider who may well be happy to add the £10k onto his mortgage at the existing rate....for alot of people that'll be 2-3% at present. He'll get a better rate on a secured rather than unsecured loan.

Over a much longer period.

No it isn't, most providers will allow you to pay off lumps of mortgage early so you can benefit from a low rate then pay the extra amount back when you're ready to.

[audidoody]

I've just raised £5,000 for home improvements (new bathroom) from my lender. Quick decision. £10 a month on the mortgage.

As long as you've got a decent amount of equity they'll give you the cash. Why kill yourself with a three-year personal loan of £400'ish a month?

[anonymous-user]

audidoody said:

I've just raised £5,000 for home improvements (new bathroom) from my lender. Quick decision. £10 a month on the mortgage.

As long as you've got a decent amount of equity they'll give you the cash. Why kill yourself with a three-year personal loan of £400'ish a month?

I take it you must be on an interest only mortgage as at that rate assuming no interest it would take nearly 42 years to repay the original loan amount. In the long term unless you pay the capital back quickly it will cost you a lot more than a personal loan.

[Timmy35]

Bluequay said:

audidoody said:

I've just raised £5,000 for home improvements (new bathroom) from my lender. Quick decision. £10 a month on the mortgage.

As long as you've got a decent amount of equity they'll give you the cash. Why kill yourself with a three-year personal loan of £400'ish a month?

I take it you must be on an interest only mortgage as at that rate assuming no interest it would take nearly 42 years to repay the original loan amount. In the long term unless you pay the capital back quickly it will cost you a lot more than a personal loan.

It goes without saying that you'd be a knobend not to regard an advance like that as something you'd put a bit aside each month to pay off well before then. BUT you'd be an equal knobend to take out an unsecured loan when you can get a much lower secured rate via your mortgage for a loan that is after all going to be used to add value to the house the loan is being secured on.


When I spoke to my lender about exactly the same topic there was complete flexibility as to when I could repay the additional borrowing.

[anonymous-user]

Timmy35 said:

Bluequay said:

audidoody said:

I've just raised £5,000 for home improvements (new bathroom) from my lender. Quick decision. £10 a month on the mortgage.

As long as you've got a decent amount of equity they'll give you the cash. Why kill yourself with a three-year personal loan of £400'ish a month?

I take it you must be on an interest only mortgage as at that rate assuming no interest it would take nearly 42 years to repay the original loan amount. In the long term unless you pay the capital back quickly it will cost you a lot more than a personal loan.

It goes without saying that you'd be a knobend not to regard an advance like that as something you'd put a bit aside each month to pay off well before then. BUT you'd be an equal knobend to take out an unsecured loan when you can get a much lower secured rate via your mortgage for a loan that is after all going to be used to add value to the house the loan is being secured on.


When I spoke to my lender about exactly the same topic there was complete flexibility as to when I could repay the additional borrowing.

If you've got the discipline to pay it back then obviously that is the better option. Trouble is most people don't which is why the country is up st creak, people buying new cars with the equity on their interest only mortgages living lifestyles their incomes can't afford.

If you don't have the discipline go for a personal loan. On 5K over 3 years the difference in interest would be only be around £150.

[amir_j]

BurblingBrownOne said:

I need to borrow around £10,000 to cover some home improvements.
Any reccomendations?
Shouldnt need any payment breaks, but would like the option to be able to pay back early without incurring a penalty.
Looking for a 5 year repayment period to keep monthly costs low.

The economy is tanking, we could fall back into a recession. Do you really need the loan? If it is for a new kitchen as opposed to roof collapsing I'd advise you to wait for now.

Edited by amir_j on Thursday 18th August 14:25

[Timmy35]

Bluequay said:

Timmy35 said:

Bluequay said:

audidoody said:

I've just raised £5,000 for home improvements (new bathroom) from my lender. Quick decision. £10 a month on the mortgage.

As long as you've got a decent amount of equity they'll give you the cash. Why kill yourself with a three-year personal loan of £400'ish a month?

I take it you must be on an interest only mortgage as at that rate assuming no interest it would take nearly 42 years to repay the original loan amount. In the long term unless you pay the capital back quickly it will cost you a lot more than a personal loan.

It goes without saying that you'd be a knobend not to regard an advance like that as something you'd put a bit aside each month to pay off well before then. BUT you'd be an equal knobend to take out an unsecured loan when you can get a much lower secured rate via your mortgage for a loan that is after all going to be used to add value to the house the loan is being secured on.


When I spoke to my lender about exactly the same topic there was complete flexibility as to when I could repay the additional borrowing.

If you've got the discipline to pay it back then obviously that is the better option. Trouble is most people don't which is why the country is up st creak, people buying new cars with the equity on their interest only mortgages living lifestyles their incomes can't afford.

If you don't have the discipline go for a personal loan. On 5K over 3 years the difference in interest would be only be around £150.

I think you're being a bit disengenous there.

Your assuming he'd automatically get the market leading 6% rate on a personal loan, which as I've said he'd need to be the Pope to get.

I have an excellent credit score, no CCJs etc, and at said market leading building society 7% in the window, became 17% on the quote.

So lets compare the interest payments shall we?

5000 over 3 years at 3% ( mortgage rate ) interest... £234.

at 6% £475 ....that's £240 a saving but not huge.

at 12%... £978.... that's £744 more than a mortgage based loan.

at 17% as quoted to me....£1417....£1183 more than a mortgage based loan.

Given money doesn't grow on trees, and he's looking to improve his house not buy a flash car that will depreciate like a stone I really can't see why he'd do anything other than get an advance on his mortgage.

[anonymous-user]

Timmy35 said:

Bluequay said:

Timmy35 said:

Bluequay said:

audidoody said:

I've just raised £5,000 for home improvements (new bathroom) from my lender. Quick decision. £10 a month on the mortgage.

As long as you've got a decent amount of equity they'll give you the cash. Why kill yourself with a three-year personal loan of £400'ish a month?

I take it you must be on an interest only mortgage as at that rate assuming no interest it would take nearly 42 years to repay the original loan amount. In the long term unless you pay the capital back quickly it will cost you a lot more than a personal loan.

It goes without saying that you'd be a knobend not to regard an advance like that as something you'd put a bit aside each month to pay off well before then. BUT you'd be an equal knobend to take out an unsecured loan when you can get a much lower secured rate via your mortgage for a loan that is after all going to be used to add value to the house the loan is being secured on.


When I spoke to my lender about exactly the same topic there was complete flexibility as to when I could repay the additional borrowing.

If you've got the discipline to pay it back then obviously that is the better option. Trouble is most people don't which is why the country is up st creak, people buying new cars with the equity on their interest only mortgages living lifestyles their incomes can't afford.

If you don't have the discipline go for a personal loan. On 5K over 3 years the difference in interest would be only be around £150.

I think you're being a bit disengenous there.

Your assuming he'd automatically get the market leading 6% rate on a personal loan, which as I've said he'd need to be the Pope to get.

I have an excellent credit score, no CCJs etc, and at said market leading building society 7% in the window, became 17% on the quote.

So lets compare the interest payments shall we?

5000 over 3 years at 3% ( mortgage rate ) interest... £234.

at 6% £475 ....that's £240 a saving but not huge.

at 12%... £978.... that's £744 more than a mortgage based loan.

at 17% as quoted to me....£1417....£1183 more than a mortgage based loan.

Given money doesn't grow on trees, and he's looking to improve his house not buy a flash car that will depreciate like a stone I really can't see why he'd do anything other than get an advance on his mortgage.

You are also being quite disengenous quoting your sample of 1, I can quote a sample of 1 where I got the exact rate advertised.

Most SVR's are around the 4% mark and there are plenty of loans out there at around 6.5-7% mark if he's got a decent credit rating there is a good chance he will get one. Nobody is suggesting he borrows at 17% that would just be stupid. If he has a fixed\tracker mortgage at a lower rate there is a good chance there would be some kind of arrangement fee for any advance which could easily wipe out any interest he would save.

That's before we even take into account basics, like does he much\any equity in his property. Would he need to pay for a valuation before any further advance etc.