Cheapest way to borrow approx £6000 for home inprovements

emma_b_4

Hi
Just wandered if anyone could help, as MSEs usually can!!
we are having double glazing fitted and doing some home improvements. we want to borrow approx £6000. £7000 tops.
we have current mortgage of £51000 left owing on a house worth approx £100,000 (based on local house prices and sales, it will probably be a little more)
our mortgage is with alliance and leister and they have said we can borrow that amount no problems, there is £150 fee for this and the rate is approx 6% i think, altho im sure he said if we do it as remortgage in feb, when current deal ends, it would be 4-5% (can remember exactly as was only quick quote)

im assuming this really is the cheapest way to boro £ but thought some1 might have a better idea.
im a student nurse so couldnt do it on credit card and clear it in timebut plant to clear mortgage faster when im qualified, hopefully, or move.

Any more infor needed, pls let me know, and thankyou in advance xxxxxxxx

emma_b_4

any ideas?please?

no_debts_no_more

For that amount of money, that's what I'd do. If you can't get one with a credit limit high enough to cover the whole amount, I'd get what I can, and a personal loan for the rest. You'll need a credit card that lets you transfer cash - in stoozing parlance a "super balance transfer". MBNA allow this for one. Then when the 0% period is up, get another one and transfer the balance. All the while paying it off as fast as you can. Make sure you can afford the minimum monthly payments on a CC if you choose this route.

The interest rate on the amount you'd add to the mortgage sounds very close to what is achievable for unsecured personal loans. Add on the arrangement fee, and it sounds quite expensive. Bear in mind that adding it to the mortgage means it is spread over the remaining term of your mortgage, so what you actually end up paying is far more, due to the higher amount of interest that builds up over the longer term.

If you can make penalty free overpayments to your mortgage, and you are disciplined enough to actually do so, then it may still be the way to go though.

What is best for you may be different to what it is for others. Your credit rating will affect the deals you can get, so you may find that unsecured credit is expensive for you. It all depends.

Whatever you do, don't sign up for the double glazing firms finance - it will have a crazy APR!

emma_b_4

yes its 22% or something!!
wont be doing that!
dont want to do credit card as we cant make any large payments to clear it, spreading them with a loan would be the best for us
ive started to shop around as mortgage provider offered us 6-7% with a £150 arrangement fee..will see what i can get it down to, we dont need the ££ till march time