Cash Or Loan

[ferret69]

I am going to have a new bathroom, the cost is about £7000, I have £35000 in the bank earning 3% so my question is should I get a loan for £7500 @ 5.2% over 3 years or should I pay cash, I am a pensioner with a weekly income of £210.00.

[Old_Geezer]

Keep as much cash as you antiipate needing in an emergency in the bank. Use the rest to fund part of your project at effectively 3%. Get the best loan you can to cover the rest, just as long as you are sure you can manage the repayments.

[BlueToffee]

Firstly, ask yourself whether or not you're going to need £35k.

If it is just sitting earning 3% and not needed, then I should leave it there and pay cash.

[Old_Geezer]

I'd have thought £7k out of £35k would still leave you enough in reserve. If so, why pay some money lender's profit for them ?

[EDDIE51]

Do you really need to be told ? The bank pays 3% but the loan is 5.2% !
Pay cash and save 2.2% . Plus you should be able to negotiate a discount for cash .

[jackthehat]

It may be worth approaching it from the 'other' direction.
Have you ensured that you have got the best price possible for your new bathroom at £7000?

[ferret69]

I've had 5 quotes and Tesco came out the best, I got £300 knocked off for being a OAP and it's a big job.

[jackthehat]

What are you having done?

[emmie]

seems a lot for a bathroom, have they broken it down as to what you want, what needs doing.

[TWR]

Keep searching Ferret, I'm sure your local trademen / outlets / Bathroom warehouses can do better than that ( Price wise)

[emmie]

i wouldn't pay more than 2,000 and that would have to be top notch, get some decent trademen in for quotes.

[BRIGHT SPARK]

Put it on a 0% credit card and then transfer to another at the end of the deal and so on

[Mick-Talbot]

That is a phenomenal amount of money, ferret.
I would try local tradesman.

Whoever you use do not pay up in full until you are totally satisfied with the job.

[Old_Geezer]

Whoever you use do not pay the deposit on your payment card as then they have the number and can grab further payments. I say this because I know it happened to someone who had an extension built. There was some excuse made that because the frames were in it was effectively finished, they could take the rest without permission and had no incentive to come back and sort the rest. Pay cash or cheque: con merchants know what the tricks are, the rest of us don't.

[TWR]

ferret,the Builder is on here, there might even be person's that will hep you with your search, if you enter your requirements, I bet someone will get you the best price also with fitting, but as said, be very careful.

[bednobs]

i don't really understand how everyone is so sure he's being ripped off - he might be having solid gold taps in his 1/2 acre bathroom for all anyone knows!

[ferret69]

Thanks everyone, the quotes I had where from large companies like Tesco bathrooms so I'll try some local tradesmen next.

[BRIGHT SPARK]

Bednobs is spot on.I've just completed our main bathroom and after prudent purchasing the materials came to over 4k and it took me six weeks to complete.

[rockyracoon]

Our bathroom cost about £7000 5 years ago so I don't think it's unreasonable to pay it now.

[bednobs]

ours wasn't too far off that, and mr b did most of the work himself