cat
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No, it is not good to borrow money to begin with. Especially if you are borrowing against your home. You never know how things are going to go and if you lost your job or something worse happened you'd loose everything! |
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muddy
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Only a idiot would borrow money for something that isn't really needed. Surely your home should come first. THINK before you do anything daft |
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D
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Funny you should ask I was in a corner shop the other day and was admiring the owners BMW that was parked outside gosh it was a beaut. He proceeded to tell me his wife didn't chat to him for a week because he remortgaged to buy the car.
Just be carefull houses are overpriced in the UK and things could change very quickly. |
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CountTheDays
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You'd be better off scouting out a 0% deal on a car. Unless the work on the house is significant there would be no real benefit to renegotiating the mortgage as the costs of doing so could be out of all proportion to the gain you'd make. |
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wahoosx2
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I would not advise it. You will go from 44% equity down to 30%. That is still a nice margin, but, leaves you less in case of an emergency. And you increase the chances of defaulting if your job goes away. The fact is, you are removing funds from an appreciating asset to convert into a depreciating asset. With all the good interest rate offers(some at 0%) you should try to manage such a transaction from current income. |
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curmudgeon
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sure...and the interest would be better. |
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Terry
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By all means borrow on the equity to do essential repairs if you can't afford them. Also do that to cover upgrades that will add value - those might include bathroom, kitchen, and window upgrades. In other words, borrow on things that will maintain or increase the actual value of the property.
In no circumstances borrow to cover the cost of a depreciating asset - that would be your car for example. This increases your debt overall, and reduces the value of your holdings. Get a smaller/older car, or use public transport until you can save up additional funds for the car. |
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Frankenstein
 |
sure so that i would get a lot of interest |
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Davy B
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Puzzled female suggests that the interest is cheaper which on a percentage rate is true but if you borrow £20000 at 7% for 20 years you will pay up to £28000 in interest before you have even paid of the £20000 cost of the car £48000 in all.
MAKES YOU THINK? |
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Franco
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No, save the money first. What will you do if you suddenly lose your job? |
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Aaron_23
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yes |
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bhal99
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You could right off the interest that way |
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puzzledfemale!
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As long as you are comfortable with the increased monthly payments, then yes, you could go for it. Remortgaging is still cheaper than getting out a bank or other loan, but be careful. With the interest rates going up as much as they are you need to make sure you will be able to accommodate any future increases. A fixed rate might be worth investigating for a couple of years. |
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mjammy1978
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oh my god, you already OWE 85 grand and you want to borrow more.
why??? have you not spent some of the last 85 GRAND for this new car.
dangerous game you are playing mate!!!!!! |
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Stephen I
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How long has your mortgage to run?
Use http://www.moneyfacts.co.uk/calculators/loanrepayment.aspx to work out how much it will cost you over the rest of your mortgage!
Longer than 10 years and it will probably shock you.... |
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olgreybuzzard
 |
Say you spent £5k on the house and £15k on a new car ,then after 3 years £5k on the house would be worth £6k ? and the car worth £7k ( £13k together) ,but ....you would still owe £20k and with interest building up you would be paying more and more for an asset worth less and less. |
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Jack G
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No wait a little |
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BreddaMan
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Not sure how interest could be better. 2nd mortgage rates at 7+ and car rates at 4 to 0%. what you would be able to do here in the states is claim the mortgage interest on your taxes, which you cannot on a consumer loan. |
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Barry auh2o
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Nooooo way. |
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Jynn
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Ya know, sadly, it's almost never gonna be paid off anyway, so yeah, grab on to the teet of life and suckle=> |
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