Can you take out personal loans for moving houses?
Borrowers can take out personal loans for a variety of reasons, like moving house. Short-term personal loans for moving houses can be a convenient way for borrowers to access additional credit to cover the costs of moving house.
Who offers personal loans for moving houses?
When it comes to personal loans for moving houses, borrowers have a few options. Depending on your current financial situation, credit history, the amount you’re looking to borrow and your relationship with your existing lender, borrowers can choose between traditional banks, credit unions and non-traditional peer-to-peer lenders.
How do you take out personal loans for moving houses?
Before taking out a personal loan for moving houses, start by working out how much you want to borrow and what the loan repayments will be. Once you’ve worked out whether you can afford the loan and you’ve found a personal loan for moving houses that works for you, you can apply directly through the bank or lender. Each lender will have their list of eligibility criteria, so be sure to read through them to make sure you qualify and have the supporting documents ready.
Can people with bad credit take out personal loans for moving houses?
Customers with an impaired credit file and bad credit histories may still be able to apply for a personal loan for moving houses. Borrowers with bad credit may be suited to secured personal loans, guarantor personal loans or short-term payday loans – although it depends on each borrower’s unique circumstances.
While there are lenders that cater specifically to higher-risk borrowers, it’s worth noting that these personal loans usually have higher interest rates and fees. Borrowers with bad credit should always do their research and make sure the lender is reputable and that they can afford to borrow the money and make the repayments. Depending on your situation, it may be worth engaging a broker to assist with finding a personal loan for moving house that is suitable for borrowers with bad credit.
Borrowers with bad credit may wish to take steps to improve their credit rating before applying for a personal loan.
How do you compare personal loans for moving houses?
As each personal loan is different, it's important to compare apples with apples. When comparing personal loans for moving houses, be sure to compare interest rates against similar personal loans for both secured and unsecured personal loans. Most personal loans have an establishment fee; be sure to check other costs such as ongoing monthly or annual fees, late payment fees and any redraw fees. Other factors to consider are whether the loan has any restrictions on what you can use the loan for or any penalties for paying off the loan early.
Before applying for personal loans for moving houses, work out how much you can afford to borrow and what the repayment terms will be. Regardless of which personal loan you choose, it’s important not to sign up a for a loan that you can’t afford to repay.
What are the pros and cons of personal loans for moving houses?
As with all types of loans, there are pros and cons to each situation which should be assessed on a case-by-case basis.
One of the main advantages of a personal loan for moving houses is they’re generally easier to get than other types of loans like mortgages and, depending on your situation, usually have lower interest rates than credit cards.
Unlike borrowing money on a credit card, you have to go through a formal application process with personal loans for moving houses. Borrowers who have an existing mortgage and access to a redraw facility may wish to explore that option as you may be charged a lower interest rate than if you borrowed the money as part of a personal loan.