Loan/Remortgage Advise

ThePoshCat_2

Hi,

We've recently had our second child and my wife is on maternity leave.

We remortgaged in July 2007, fixed for 2 years.

Our plan was always for my wife to be off until February and then return so we need some money to tide us over until we're back to normal, probably somewhere in the region of £5000 ish.

Originally I thought we'd just get a loan and then pay it off in July next year when we remortgage again, but in view of the turmoil around at the moment, is there a better, safer, cheaper alternative?

Would welcome any views please.

Many thanks

Rafter

PoshCat,

You really don't want to be adding living costs to your mortgage if possible and should try and plan to pay it off. Getting a further advance or larger mortgage might be tough if you don't have much equity.

If your credit rating is good you might be able to get a couple of 0% credit cards to tide you over and avoid paying any interest.

Otherwise make sure you get yourself a flexible loan without repayment penalties so you have options next summer. Try the post office one?

Good luck

R.

ThePoshCat_2

Thanks Rafter,

Obviously things have moved on a little recently, but we have a better idea on what we want now.

Firstly, there's £70k equity in the house if pessimistic so I'm not too worried about that.

We like the idea of a 0% credit card for purchases, but we can't use this for mortgage payments, utilities etc without incurring immediate interest can we?

Either way, we need about £6k, so £2-3000 on credit card plus cash loan for rest. We have enough in our overdraft facilities to cover this but this is not the cheapest way to fund is it?

Then we'd pay it all off with a remortgage in July.

Is that the best way to do things or is there a better alternative?

Thanks again.