Pool loans allow you to spread the cost of purchasing a swimming pool over a longer term, meaning there’s no need to fund a large one-off payment. This article will discuss everything you need to know about pool loans in the UK. We’ll cover interest rates, repayment terms, and more! So read on for all the information you need to make an informed decision.
What is a Pool Loan?
A pool loan is a type of personal loan that can be used to finance the purchase and installation of a swimming pool. Pool loans typically have high-interest rates and short repayment terms, so they’re not for everyone. But if you’ve got your heart set on purchasing a pool, a pool loan can help make your dream come true.
How does a Pool Loan work?
Pool loans work like any other type of personal loan. You’ll borrow a lump sum of money and then make monthly repayments until the loan is paid off. The interest rate on your loan will determine how much you pay in interest each month. And the repayment term will dictate how long you have to repay the loan.
Most pool loans have repayment terms of five years or less. That means you’ll need to be prepared to make some pretty hefty monthly payments. But if you can swing it and you’re in a position where you’re financially secure, they can be a cost-effective way to borrow.
What are the advantages of a Pool Loan?
The advantages of a pool loan are:
|What are the advantages of a Pool Loan?||What are the disadvantages of a Pool Loan?|
|You can spread the cost of an expensive pool over the course of months or years.||Since these are secured loans, either against home equity or something else of value, if you fail to keep up with your repayments, you can end up.|
|You can easily qualify for these loans, more so compared with other loans, since there are typically secured against your home equity or other forms of collateral.||Typically, these loans have short repayment terms of a few years max, which means you need to pay the loan off quickly.|
|Because the loan is secured, you can get lower interest rates, especially compared with other forms of interest.|
- Spreading an Expensive Cost: The main advantage of a pol loan is that it can help you spread the cost of your pool purchase over time. Typically, terms will last between two and five years, making a big difference when you’re trying to finance an expensive purchase.
- Easy to Qualify: In many cases, it can be easier to qualify for a pool loan than other types of loans, like home equity loans. What’s more, since these loans are secured by
- Interest Rates Can Be Lower: You may be able to get a lower interest rate on a pool loan than you would on a credit card. This is because the loans are secured, but it will depend on your credit score.
What are the disadvantages of a Pool Loan?
The disadvantages of a pool loan are:
- Short Repayment Terms: One of the biggest disadvantages of pool loans is that they typically have short repayment terms. This means you’ll need to be prepared to make some pretty hefty monthly payments. If you’re not able to do that, a pool loan might not be the right choice for you.
- May Need Collateral: Finally, another disadvantage to consider is that most pool loans require collateral. This means that if you default on your loan, the lender could seize your property (in this case, your swimming pool) as payment for the loan.
What are the best pool loans?
You’re far more likely to get a dedicated pool loan if you live in the USA, where you’ll have access to companies like Sofi or Lightstream, which offer dedicated credit services for pools. However, these services don’t tend to be available in the UK, so what can you do if you live in the UK?
Well, your best bet is to get a personal loan. Typically, to put a pool into your garden, including the cost of everything, a professional installation, having a good warranty and making sure everything is safe will cost you around £50,000, with the average price of everything being around £80,000. A personal loan can offer a maximum of £50,000, so if you’re looking to borrow more than that, consider a secured loan.
Are pool loans tax deductible?
No, pool loans are not tax-deductible. However, other ways to finance your pool may be eligible for tax deductions, such as home equity loans or home improvement loans. This is only if the pool is for business purposes. If the pool is for personal use, then the loan will not be tax-deductible. If you’re putting a pool in your back garden, then that’s not possible. Be sure to speak to a tax advisor to see if any of these options would be right for you as this can vary depending on where you live.
Are pool loans unsecured?
No, pool loans are not unsecured. Most pool loans are secured against property, as a form of secured loan. If you fund a pool using a personal loan, then it will be an unsecured loan.