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To think that funding home improvements through loans is ok?

(17 Posts)
PlateGirl Fri 28-Aug-15 22:33:02

I'm not talking credit cards here.

I think our home could use a new kitchen and bathroom. Our kitchen is scruffy and doesn't have nearly enough cupboard space. Our bathroom sink fell off almost two years ago.

Our household budget has several hundred pounds slack in it each month, but we spend it on clothes, meals out, booze, fags. We're not proud of this but it happens.

I think we could have both new bathroom and kitchen within the next year using a home improvement loan with monthly payments which would eat into our slack, so we'd just have to buy less crap.

DH thinks we should save for 3/4 years and get them then. He doesn't think the current scruffiness/insufficient storage space/no sink is a problem.

I don't think that having credit you can afford to pay monthly is a problem. DH wants no more credit.


PoundingTheStreets Fri 28-Aug-15 22:41:21

I don't think either one of you is being unreasonable. You simply have differing approaches to the same problem, both of which could work. There is nothing wrong with credit as long as its affordable and well-managed and it allows you to make things happen more quickly, but if you can save up yourself, you can avoid spending more by not paying interest on borrowed money. Both fine.

For me, the decider would be on your day-to-day management of money styles. If you are capable of saving religiously every month and not dipping into it, save up and sort it. However, if realistically this won't work, borrow and pay it back instead of saving it.

wowfudge Fri 28-Aug-15 22:43:07

I think you are right - providing you have a bit of a cushion for any unexpected expenses or an interest rate rise affecting your mortgage then do it. I waited five years to redo the sodding bathroom and now we need to move so I'm not really going to enjoy it although it should make the house more attractive to buyers.

PuntasticUsername Fri 28-Aug-15 22:51:15

I'd compromise - figure out how much you reasonably ought to be able to save every month, then try and save that much a month for six months, then see where you are. If you've managed it, you'll have got a lump sum that means you'll have to borrow less than you otherwise would, and you'll have proved that you can find the money for the loan repayments every month.

If you haven't managed to save as much as you thought, that's a sign that the repayments may not be as affordable as you'd hoped!

PlateGirl Fri 28-Aug-15 22:51:33

Thank you both.

We can't discuss it without really getting stressed and angry. I think credit in this situation is quite normal, and DH thinks that this would be terrible. I guess he'll win as he wants to maintain the status quo.

JenniferYellowHat1980 Fri 28-Aug-15 22:54:06

Well bearing in mind that if you pay back the loan before you need to remortgage, the improvements could increase the value of your property, YWNBU. However that's probably not true of purely cosmetic improvements.

Thelushinthepub Fri 28-Aug-15 22:54:09

I don't think you are being unreasonable at all- but how about getting them on interest free credit? Nearly everywhere does it. WIN WIN

PuntasticUsername Fri 28-Aug-15 22:56:22

Credit is fine as long as the rates are reasonable and you can afford the repayments. Why is your DH afraid of it, to the point where the two of you can't talk about it without fighting? sad

futureme Fri 28-Aug-15 23:00:15

Depends on how secure your jobs are etc.

We have always saved and wouldn't use credit, and surprised at how easily people do. Would it be cheaper to add it to your mortgage?

Osolea Fri 28-Aug-15 23:45:15

Neither of you are wrong, is there any chance you could compromise on sticking to a saving plan for 1-2 years and if you've managed that fairly well then consider getting a loan?

JawannaDrink Fri 28-Aug-15 23:50:55

Your bathroom sink fell off years ago but you spend huge amounts on fags and booze and meals out? You don't sound responsible enough for large loans, tbh.

Spartans Sat 29-Aug-15 09:35:38

I agree with op. the fact that's it's been in a state of disrepair for so long and it hasn't been a priority, to me, says you aren't very responsible with money. Either of you. Which is why he is probably not wanting to do it.

Littlef00t Sat 29-Aug-15 09:53:53

How much slack do you have in the mortgage? I always worry about losing a job when i have debt.

Why don't you do your best to save for a year, to show him you can manage the repayments?

Littlef00t Sat 29-Aug-15 09:55:30

Tbh I'd be paying now for the sink to be fixed but just because the kitchen is scruffy and small isn't enough reason to get credit to sort. Gut your kitchen of non essentials and find storage elsewhere in the house for the rarely used stuff.

MissDuke Sat 29-Aug-15 10:07:11

We put off house improvements for years, we had the savings but didn't want to spend them and we have never taken credit for anything before blush When we did the kitchen a couple of years ago we decided to use an interest free credit card for the first time to pay for the units and tiles. I then set up an automatic monthly payment to ensure that it was all paid off within a year (the interest free period). It was reassuring to know that we had the money to pay for it in our savings should something go wrong. We did the bathroom this year (we lived here for 10 years with no shower!!!!) and just bought things gradually each month using the 'slack' you mentioned - an ex display suite one month tiles the next, flooring the next etc.

Both of these approaches worked fine for us and you could do either. The bathroom especially doesn't need to cost much and if you dragged out the purchases over a few months, you probably could do it without credit if you really tighten your belts. Would be well worth it!

I agree with you though that it is fine to take credit for things like this - once its done it will last years and years so is worth it. I just don't understand people taking credit on things that are long gone before they have even finished paying it off.

DonkeyOaty Sat 29-Aug-15 10:21:32

A new bathroom sink is hardly any money, less than £50 surely. How are you washing your hands after using the loo?

Spartans Sat 29-Aug-15 10:25:37

Sorry my earlier comment should have said I agree with pp not op

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