Has one got a secure loan on their property while claiming benefits

happyfella

I am getting fed up with the slow process of having a toilet put downstairs. There has been mistake after mistake and lack of communication and false promises. I am now considering just sorting it out myself. I would like to know if it is possible to get a secured loan on a property while claiming benefits so i can sort the toilet out myself

ShirleyW

happyfella said:

I am getting fed up with the slow process of having a toilet put downstairs. There has been mistake after mistake and lack of communication and false promises. I am now considering just sorting it out myself. I would like to know if it is possible to get a secured loan on a property while claiming benefits so i can sort the toilet out myself

How much is it likely to cost?

For a secured loan I believe the banks probably want you to borrow in excess of £20,000.

For smaller amounts you should be able to access an unsecured loan.   I have done this on benefits with a loan of £5,000 for home improvements. 

Depending on what means tested benefits you receive you should be careful that cash received from a loan doesn't take you over any capital/ savings thresholds. 

happyfella

any advice where to look. They reckon it is going to cost around £20,000 but I know I can get it done for around £8,000. They want to add more things than i need

2oldcodgers

I would be quaking in my shoes if I was on benefits and wanting to take out a secured loan on your home.
For a start £20k  for a downstairs loo is ridiculous. It does depend where you want it placed in the home. A simple extension say by the front/back door with a loo and wash basin would cost no more than £4000.
Having one in a partioned part of the home would be cheaper.

This reminds me of a window salesman that I recently had round for a quote to supply and fit four new windows to the front.
After over 2hrs of listening to his tripe about the windows we could have he came up with a price of £9520.
However if I was to sign up there and then, giving a 30% up front deposit he could reduce the overall price by £3000!!! He was shown the door.
I have found a local company to supply and fit the very same windows for £2500.

Ema_Scope

@happyfella
I'm sorry that the process is taking so long, that must be really frustrating. I'm sorry I don't know anything about unsecured loans, but Scope's online information on mortgage affordability and benefits recommends getting independent financial advice from Unbiased or Personal Finance Society. They may be able to give you some advice on your options.