Unsecred loan or Mortgage?

Need some advice please on a loan we require for a small house extension - require a loan of around 25K.


Am I best getting an unsecured loan our going down the mortgage route? House is worth around 420K and we have no mortgage currently as I was able to pay off when I was made redundant about 3 years ago. Now re-employed and finally salary is at a good level again, but its taken time. No other debts so just the usual utility bills, mobile and food shopping. We are both in our late 40's.


We have savings but not enough to cover this and we like to keep a fund aside. My wife may well change her car next year so we will have finances for that.


Mortgage is more cost effective but are we wise in having a secured loan again? Are there any other options?


Grateful for any advice.