Reasons to take out a £25,000 to £50,000 loan
There are many reasons why people choose to take out £25,000 to £50,000 loans. Some people apply for 25K loans because they’re large enough to be used for major home restructuring projects. A new conservatory, a single-storey extension or converting an attic into a contemporary loft space, for example, are often within this budget. A 50K loan meanwhile, or something in between, might be used to make multiple large-scale home improvements. Alternatively, entrepreneurial types sometimes take out loans of these values to either start new companies where initial capital is required, or to invest in existing enterprises.
Some borrowers take out loans of £25,000 to £50,000 in order to reduce outgoings on other debt. Consolidating a number of loans, credit card debt or other outstanding amounts can be significantly cheaper than servicing multiple payments each month. Bringing a number of debts together can help you gain greater control over your personal finances and put more cash in your pocket on a monthly basis. Ultimately, it can also be the cheaper option in the long term.
Making sure you can afford your loan
To make sure you can afford your loan into the long-term future, there are a number of important steps you can and should take. Anyone asking themselves ‘can I get a £50,000 loan’ should also give serious consideration to how they will maintain regular repayments on a large loan. Before applying for any borrowing, begin by creating a household budget. Take an honest look at how much cash you have coming in, and how much going out. Make a note of all your regular outgoings. This should include all your monthly bills including rent or mortgages, utilities, internet, mobile phone charges and council tax. It should also include any direct debits or other outstanding payments you are responsible for. Once you’ve recorded all this, take a look at your variable expenses. These are costs that will be different from one month to the next like clothing, food, holidays, school trips and entertainment. Don’t forget to factor in any extra expenses like saving plans, insurance policies or pensions. It’s very important to be realistic with these figures. Once you have a total figure for your outgoings, subtract it from your income to see how much you might be able to afford on a loan repayment every month.
Remember, loans these kind of loans will secured against your home or another high-value asset. Use our loans calculator to see how much monthly repayments may be on the amount you want to borrow for your given time frame.