loan or Mortgage?

roger215

My wife and I currently live in a 3 bedroom house which has been valued at £160k, we are in a lucky position to be both mortgage and debt free. We are proposing to sell our house and buy a four bedroom house for an estimated 200k. This would mean we would be looking at borrowing 40k for a period no longer than 10 years. We both are on good salaries and have no bad past credit etc. What would be the best, cheapest and quickest way to borrow 40k taking into account interest and any charges etc.
Thanks in advance Roger

caracal_77

Did you consider selling your place, live in rental for a while and buying later (maybe 6-12 months from now)? you might then move to a 4 bedroom house AND still be mortgage free.

roger215

caracal_77 wrote: »

Did you consider selling your place, live in rental for a while and buying later (maybe 6-12 months from now)? you might then move to a 4 bedroom house AND still be mortgage free.

Thank you but we have and are considered this option but it would only work if the housing markets recovered. We would rather cut our ties and have the one house.

caracal_77

roger215 wrote: »

Thank you but we have and are considered this option but it would only work if the housing markets recovered. We would rather cut our ties and have the one house.

No. this will work if the housing market continues to fall more. You want to rent in a falling market and own when the market rises. This is from a financial aspect only.