Mortgage or Loan?

sexysam

My daughter want to borrow £25000 over a period of 5 yrs to buy a house.The rest of the purchase price will be cash

Which will work out cheaper, taking into consideration the mortgage fess etc that she will have to pay.

Is there any setup fees for loans?. Can I pay loan off early with no penalty charges. does taht apply to mortgages?

What is best mortgage/loan to atke out at present time?

Thanks

nrsql

Could try an offset mortgage if she has the income to support it.
First Direct do them with £99 fees (there will be others as well but not much).
Can offset as much as she wants and pay off over the 5 years and that money will always be available if she has a use for it.
Have a look at the rates but I would expect the mortgage to work out cheaper.

Peelerfart

I;m fairly sure that a lot of companies stipulate a minimum amount of about £30K on a mortgage.

Maybe wrong though , that happens to me often.

nrsql

That's why I suggested an offset (flexible would be as good) - can get a higher facility but can offset the remainder so no extra cost as long as you avoid products that charge a fee as a percentage of the mortgage.