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  • FIRST POST
    • JustineB
    • By JustineB 7th Jun 17, 10:18 AM
    • 4Posts
    • 0Thanks
    JustineB
    Small Mortgage or Loan??
    • #1
    • 7th Jun 17, 10:18 AM
    Small Mortgage or Loan?? 7th Jun 17 at 10:18 AM
    HI,

    I am new to this forum

    I am currently selling my investment property and I can then pay off most of my mortgage on the house i live in. Therefore i will only need a mortgage of around £10k , people at work say maybe a personal loan would be better? i thought as mortgages rates were so low at the moment that would be the best way to do it? I know some companies have a minimum amount you can borrow for a mortgage too so i might struggle to find a good deal? I will also speak to santander my current mortgage company and ask them what they can do for me when the current fixed rate finishes in Sept.

    I would be interested to hear your opinions?

    Cheers

    jus
Page 1
    • Edi81
    • By Edi81 7th Jun 17, 8:02 PM
    • 274 Posts
    • 161 Thanks
    Edi81
    • #2
    • 7th Jun 17, 8:02 PM
    • #2
    • 7th Jun 17, 8:02 PM
    You may be best reverting to SVR and paying off the mortgage as quickly as you can.
    • JustineB
    • By JustineB 11th Jun 17, 9:47 AM
    • 4 Posts
    • 0 Thanks
    JustineB
    • #3
    • 11th Jun 17, 9:47 AM
    • #3
    • 11th Jun 17, 9:47 AM
    Thanks for the reply Edi81, I should have mentioned the reason i want a £10k mortgage or loan is for renovations on the house i live in. I could pay off my mortgage completely but would then be left with no savings so i want to keep £10k back.. Is it best to pay off the mortgage and get a loan or just keep a £10k mortgage?? which is a cheaper way of financing this? The SVR will go up to 4,49% which i dont want to stay with if there are loads of mortgage deals under 2% at the moment.

    jus
    • getmore4less
    • By getmore4less 11th Jun 17, 10:33 AM
    • 29,793 Posts
    • 17,817 Thanks
    getmore4less
    • #4
    • 11th Jun 17, 10:33 AM
    • #4
    • 11th Jun 17, 10:33 AM
    You have a mortgage so what will be the problem just pay off less and keep back some cash.

    Just take the best retention deal they have if other lenders mins are too high.

    crunch some numbers if they have a minimum amount for retention deals.
    higher borrowing on lower rate with overpayments may still be cheaper than SVR. if they let you shorten the term you can pay it off quicker.


    Mortgage will be the cheapest borrowing unless you have access to 0% credit cards with very low/no fees like purchase ones.

    on £10k 4.49% and 2% on a 2y fixed you are looking at a difference of less than £500

    if paying say £200pm over 2 years the difference is £400
    • Edi81
    • By Edi81 11th Jun 17, 10:42 AM
    • 274 Posts
    • 161 Thanks
    Edi81
    • #5
    • 11th Jun 17, 10:42 AM
    • #5
    • 11th Jun 17, 10:42 AM
    The problem with the cheap fixed rate mortgage deals is they usually have a minimum loan of £20k or £25k.

    How many years do you want to repay the last £10k over? A personal loan may be cheaper but only if you get the headline rate.
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