Bobeye Posted November 13, 2006 Share Posted November 13, 2006 We are due to purchase a MH in the next few months. However we are looking around to find the best way of financing the deal. We are probably looking at borrowing 25k We dont really want to borrow against our property as we have cleared the mortgage against it. So who are good lenders to investigate? Link to comment Share on other sites More sharing options...
Don Madge Posted November 13, 2006 Share Posted November 13, 2006 [QUOTE]Bobeye - 2006-11-13 12:47 PM We are due to purchase a MH in the next few months. However we are looking around to find the best way of financing the deal. We are probably looking at borrowing 25k We dont really want to borrow against our property as we have cleared the mortgage against it. So who are good lenders to investigate?[/QUOTE] Hi, This is a good site for checking loan rates. http://tinyurl.com/yetf3z Don Link to comment Share on other sites More sharing options...
howie Posted November 13, 2006 Share Posted November 13, 2006 Your home will be at risk wherever you go borrowing that sort of money. I would rather go back to my bank, and even if remortgaging is not your preferred option then still see what they have to offer. Better this than some of the other schemes you see advertised on the t.v. Howard. Link to comment Share on other sites More sharing options...
Don Madge Posted November 13, 2006 Share Posted November 13, 2006 [QUOTE]howardtcz - 2006-11-13 12:56 PM Your home will be at risk wherever you go borrowing that sort of money. I would rather go back to my bank, and even if remortgaging is not your preferred option then still see what they have to offer. Better this than some of the other schemes you see advertised on the t.v. Howard.[/QUOTE] Howard, It is possible to get an unsecured loan of that amount if your joint credit rating is good enough. Don Link to comment Share on other sites More sharing options...
howie Posted November 13, 2006 Share Posted November 13, 2006 I agree with your comment on unsecured loans Don, but by their very nature you will find these will involve a higher interest rate. Not knowing the circumstances involved I would still look at what my bank had to offer before going else where but this is a personal viewpoint. 25k is a lot of money to borrow, and it would be wise to make sure that any insurance cover will be adequate for possible future misfortunes, and another point to consider is the time required to pay back this amount plus interest on something that may have very little value when the debt is finally settled. Sorry if I sound a bit negative on this, but for myself I would drop my sights a little and progress on to more expensive vans over a period of time. Howard. Link to comment Share on other sites More sharing options...
madguy4 Posted November 13, 2006 Share Posted November 13, 2006 Hi. After working in the motor trade as sales for many years. we always recomend people to use our in store credit facilities..for one reason or another....unfortunatly these options only tend to favour the lender and the sales person,,,with high comisions...( please dont tell anyone i told you this!!) so what i would recomend to you is to see your bank first,,,,look very closely at other forms of lending as there is always some form of small print that people are not always made aware of...fundementaly you will always have more power over the banks should things go wrong as you can take your case to the banking ombudsman who seem to be watching them more closely nowerdays compared to the past..which ever way you fund you new vehilce there are only two garuentees. 1, It will depretiate in value. 2, it will cost you more than you wanted. hope this is somewhat helpfull. Link to comment Share on other sites More sharing options...
Bobeye Posted November 13, 2006 Author Share Posted November 13, 2006 Much appreciated input from all. Thanks for your help Link to comment Share on other sites More sharing options...
Mel B Posted November 13, 2006 Share Posted November 13, 2006 The dealer (assuming you but it from one) will try to push their finance package, usually through Black Horse Finance. Don't be tempted unless you know the true cost - there is usually an initial set-up fee and an end of loan fee which need to be incorporated in to the total loan cost. In addition, when you buy a vehicle using this type of finance the vehicle doesn't become your's until the final loan payment and end fee has been made. Until then they own it. Not a problem if you intend to pay it off in total as was planned, but what happens if you want to change the van (ie part-exchange) and your loan still has a few years to run, or you need to sell it for whatever reason and not get another? If the first scenario, you're left with having to get another loan arranged which will pay off the first loan in full plus the additional cost of the new van (assuming you don't have the cash to put in), you end up paying interest on interest and usually the settlement figures are not that good. As for the second scenario, again you will have to pay off the loan in full before you can sell it as until then it isn't your property, there may be ways to get around this but I wouldn't think it would be cheap. The better way is to get a general loan, bank, building society etc, and buy the van outright, so that it becomes your property as soon as you purchase it. That way, if it's a secured loan on your property selling or changing the van won't have any affect at all on the loan unless you want it to, ie to increase it for example to purchase a more expensive one. Additionally, if you subsequently need to sell the van you can without an restrictions, yes you'll still have the loan to pay back but at least you won't have the hassle of it being 'secured' on the van itself. We found the best place to look for a loan was on the internet, there are many loan comparison sites which will do the looking for you, that's how we got ours a few years ago when my father in law wanted to buy his council property, due to his age he couldn't get a mortgage so we got a cheap loan for 3 years and he just covered the cost of the repayments (safeguards were in place to ensure it was paid in the event of unforeseen problems etc). If you intend to spread the cost of the loan over say 10 years, you'll probably find it cheaper to get a mortgage with a fixed rate, if it's only for 3 or 4 years then a normal loan would probably be more cost-effective. Whatever you do - enjoy it when you get it!!! :-) Link to comment Share on other sites More sharing options...
Richy777 Posted November 13, 2006 Share Posted November 13, 2006 I have just arranged a loan of a simluar amount. I found that going through my Building Society was the cheapest by far. I have saved over £4500 on the total cost of the loan compaired to the best deal I could get of a dealer. Link to comment Share on other sites More sharing options...
kelly58 Posted November 13, 2006 Share Posted November 13, 2006 Hi this may not be applicable to you but we have just financed our new motorhome by taking the tax free lump sums from our company and personnel pensions no repayments no interest charges and the rate of interest savings are earning its better to use your own monies than pay high interest rates . just looking forward to taking delivery of our new motorhome. best regards kelly Link to comment Share on other sites More sharing options...
Don Madge Posted November 13, 2006 Share Posted November 13, 2006 I spent 13 years working as a volunteer adviser at the Citizen Advice Bureau. If you had seen the misery that hire purchase and secured loans can cause it would put you off borrowing for life. I would advice anybody to steer clear of hire purchase, Mel has already pointed out the pitfalls. Secured loans are OK if you have a guaranteed income and I mean guaranteed like government pensions. Unsecured loans are the ones to go for, interest rates are a bit higher but what you have to consider is what action can the lender take and what damage can he do if you default. Hire purchase at the worse, county court hearing, you loose your van and you have a CCJ against you. Secured loan, worst case scenario you loose what ever the loan is secured against, usually your house. If you don't loose the house you might have a charging order put on it. Unsecured loan, worst that can happen is you get a CCJ judgement for default, you still have you van and your house. Offer a monthly payment to keep the bailiffs away. There's no contest really is there. It's a few years since I did any debt counciling so things might have changed. If anybody needs advice see the CAB website at http://tinyurl.com/yzbb9u Regards Don Link to comment Share on other sites More sharing options...
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