B9GLY

I have noticed that a few companies offer loans over a longer time period for repayments if you are using it for home improvements, do they ask for proof of this or check?? as it would mean i could borrow a little more cash for a better car??

thanks

B9GLY

anyone know??

Square

**** Son, your on the wrong forum here asking that sort of question.
Loans SN's members are all loaded

B9GLY

Yeah i know, but im just a mere mortal!

paul-s

You would be fine if you done a home improvement loan on top of your mortgage and said you were using this to do up your house.

Then what you really do with the money is up to you. Blow it on coke and ****** if you really want!!

sti-04!!

Speaking from experience Paul ??

B9GLY

the example is i have my mortgage with northern rock and am looking at getting a loan from tesco. most companys only allow you to borrow amounts under 15k over 5years, but with tesco, if i say im doing home improvements then i can take it over 7 years???

but are they going to ask for proof of what im spending it on?

AudiLover

alot of people borrow money saying its for house improvements, when in reality its a deposit for a second home.

Varboy

Northern ROck are currently doing 25k over 10 years

john banks

You could argue that it is a sensible idea not to consider putting your car ownership in a negative equity situation. Therefore your deposit should be large enough or the term of the loan short enough that after any exit penalties or front loaded interest (look these up if you don't know about them) you can always sell the car if necessary without still owing money.

With rising interest rates you may wish to consider whether your loan is fixed or variable.

Depending on the equity in your house you may consider borrowing from your mortgage lender to raise funds as this is likely to give you the best rate, but without discipline/overpayments you'll be paying for that car for the term of your mortgage (think BMW sitting outside ****hole house ), and any mortgage equity release in the present economic environment may be something you later regret if you might even dream of struggling to meet payments.

HankScorpio

Do you really want to paying for a car for seven years?
Will it last that long?
Interest over 7 is a lot.

2000TLondon

Agree with most replies. The answer to your question though is no, they will not come and check that you have made X amount of pounds of improvements to your house since you took the loan. Spreading payments for a car over that period though is not a good idea, IMO........

HankScorpio

And charge you 8 grand for the privilege.

Cheap Loans | car, personal & secured homeowner loans - moneysupermarket UK

Long terms are attractive to start with but think hard. That's a regular commitment for years.
I've done this in the past and am still regreting it...

B9GLY

thanks for the replys, the idea i have is to keep costs down for the first year or 2 as im trying to set up a small business and then when that is up and running hopeefully will pay the loan off in a couple of years! the only reason im looking at getting a new car is that my current one is getting on abit and has high miles etc so would be more cost effective to get a new one rather than keep spending on this one with it not being worth much!

the reason i am looking at tesco is that they do not do front loading interest so if a pay off early at least i will have reduced my loan abit!

john banks

Only you know your circumstances and attitude to risk. Bear in mind the failure rate for small businesses and the inexperienced often make mistakes first time around, don't assume worst case scenarios, realistic market shares, profit margins, forsee problems etc. A very reliable car should be able to be bought for £2k these days I would think.

Fuzz

I can highly recommend the idea of blowing it on coke, ****** and soapy massages... having just come back from Thailand.

Andy

KiwiGTI

2 girl special with the lilo?

Fuzz

That's the one.

Trout

iTrader: (1)

A lender may well ask for receipts for work done. The Halifax did when I did some work on my house and extended my mortgage to do so.

I have an 'equity reserve' which is a draw down facility - however I do need to say what it is for and they may ask for proof. The good news is I can spend it on anything other than funding a business start up directly.

Rannoch

falkster

Over the last few years it has worked out better for me to get a loan then spend money I have either in a bank or tied up in shares.

Money Supermarket is usually pretty good. I had to buy a car to get to work and back as I didnt want to put 110 miles a day on my M3 so got myself a V reg Alfa 156 which cost me £1700. Got a loan for 2k to cover the insurance and the loan was at 4.9% and over 2 years I pay back 200 quid interest (ish)

2000TLondon

Wouldn't they only ask for a receipt if you are securing the loan against the property? So if you are using the equity in your house for improvements, in theory to increase the value, they will want to see proof of work to ensure value has "increased" In the OP's situation, it sounds like an un-secured loan, so this wouldn't apply......

falkster

Im sure that is the only instance where a lender would ask for evidence

B9GLY

yes it would be unsecured!

turboman786

The lender couldn't give a monkeys what you spend the cash on, the simply want to lend as much as poss and charge as much interest as poss!