The best way to borrow money?

chipmunk

Hi guys,

I wasn't sure which forum to post this under so if it's in the wrong place, my apologies.

We paid off our mortgage earlier this year :j (one advantage in getting married very young:p ) and as we don't like being out of debt for too long:rolleyes: , we are hoping to build an extension to the house and so need to finance this.

Can anyone give their advice on the best way to go about this. We considered a personal loan because there are some good offers around with reasonably low interest rates, but a friend said that there might be better offers to be had down the mortgage route.

Having only ever had the one mortgage, I don't know if it would it be classed as a re-mortgage or a new mortgage.

Can anyone advise and also does anyone have any thoughts on the best mortgage rates/terms around at the moment.

Thanks
Chipmunk

herbiesjp

Some lenders will indeed class this as a re-mortgage of an unencumbered property.

The benefit of this is that you will get free legal fees and free valuation as part of the package. Whether these schemes work out cheaper for you will need some number crumching, as it will depend on the figures you are looking at.