remortgae versus loan

discodiva1

Which is the CHEAPEST way of borrowing £25,000 for home improvements. Some say re-mortgage but you pay back loads of intersest & pay it for how long your morgage runs ( in my case 25 years ) Some say a loan you can have it paid in 10 years!! Does anyone have knowledge in this field please?

cloud_dog

The simplest way to look at this is to look at the interest rates involved. The thing to bear in mind is that loans do not often go past 10 years in duration. If you were to re-mortgage you could probably set the term on the additional borrowing seperate to your existing mortgage, and or make overpayments to pay it off sooner, i.e. in line with 10 years. This depends on the T's & C's of your lender.

cloud_dog

discodiva1

Thanks cloud dog, that is handy to know.