Loan or add to offset mortgage?

swizzle_2

Hi

We are looking to raise £12k for home improvements, but what is the best/cheapest way to do it?

Have spoken to mortgage lender and we can add it to the mortgage, we have 10 years 8 mths left and can repay over same term. Asked about apr= was told it was 5.4.
If we do this we can pay off more it we want to to reduce the amount of interest payable.

Or are we better off going for a loan, would have to be over 10 years to make sure we would be ok with the repayments.

Any comments please?

Thanks

Rafter

You won't be able to beat 5.4% with a personal loan.

The only issue is that your mortgage is a 'secured' loan so you are putting your house at risk.

Only other comment would be are the home improvements long term? Ie you don't want to be spending £12k over 10 years on redecoration or something that will be worn out in 5.

Most of the market leading unsecured loan rates you see are for a lot less than 10 years too, you probably wouldn't get much better than 6.9% APR for that long.

Good luck.

R.

Faster_Loans

Hi swizzle,
Extending your current mortgage seems a good option. It may only be worth shopping around if you want more cash or for longer. I do not know your incomes but the bank seems satisfied.
regards,
Alex

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greencatrus

check out zopa https://www.zopa.com they have some of the best rates goin as it is a lending market so your tradintg directly with investors. If you want to join send me your name and email then we can both get £30 once you borrow or lend money - Paul

greencatrus

Glad to help and thanks happy lending