Best way to borrow £7,000?

emmonk

Hi

I need some advice please! We are halfway through an extension and we are going to be £7,000 short so need to borrow it some how.

We have a mortgage (rate 5.2%) but no other debts. Do we:

• Ask to increase our mortgage - cheaper rate but more in the long run
• Take out a loan
• Try to do a credit card shuffle type thing with low rate balance transfers

Any thoughts would be appreciated

Love Emma

countrygirl84

It all depends on your situation. You stated the facts yourself...

• Ask to increase our mortgage - cheaper rate but more in the long run
• Take out a loan
• Try to do a credit card shuffle type thing with low rate balance transfers

My advice is to sit down and work out if you can afford the loan payments or get a credit card with a large limit on a good rate first before looking at the extra borrowing on your mortgage. As you said, the mortgage rate is lower but you are repaying it over a longer period of time. And make sure that if you go for the credit card option, you would actually make the repayments to get rid of it. I'm terrible so if it was me, I would probably just end up paying the minimum payments whereas with a loan you know you have to make the set amount each month so it's easier to stick to.