Obtaining the last amount

J45

Hi i have been saving for a house for a few years and almost have enough to purchase what i want. Now the problem is i have to buy it now but im going to be 10-15k short.

Which is the cheapest way to go about getting the rest of the cash? Standard loan, credit cards or a small mortgage?

G_M

Depends on your intended time period to pay it back.

0% credit cards are good if you can get a high enough credit limit. Swop from one to another - maybe good for a year or.....3?
Loan - longer term, more expensive.
Mortgage - cheaper than loan but usually much longer term. You can get yourself one with no penalties for early repayment though.

J45

Well ive never had a credit card in my life or any kind of loan so i guess the 0% credit cards are out of the question?

What sort of interest rate would i be looking at for a mortgage of 15k?

Im looking to repay it back within 3 years, likely to be 2 years.

Running_Horse

There is no such thing as a 0% credit card? Balance transfers typically charge 3%.

Why do you have to buy it now? Why are you suddenly unable to save any more?

It's never certain what house prices will do, but not many think they will rise rapidly for several years.

Keep saving.

BitterAndTwisted

A mortgage is likely to be the cheapest money you'll ever borrow. Shop around and get a decent deal but watch out for any early redemption penalties. A small mortgage over a very short period of time is quite unusual and you're very lucky, really

Running_Horse

Sorry. Misread the OP. Thought you were £15,000 short, with a mortgage to raise.

Yeah, get the mortgage with ability to overpay. £15,000 will be paid off in no time.

JoolzS

How about buying what you can afford rather than what you want?

Julie

Running_Horse

If people only ever bought what they could afford without a mortgage, then the housing market really would collapse. Sounds like the OP is ultra prudent saving up all but £15,000 of the price of a house. £15,000 can make a big difference in quality of house, and the OP has shown they can afford it. They should be congratulated.

zappahey

JoolzS wrote: »

How about buying what you can afford rather than what you want?

Given that your typical buyer borrows six-figure sums to buy a house , the OP having saved enough to only need to borrow £15k makes it sound like they can comfortably afford the house.

redlady_1

Any debt you have outstanding when applying for a mortgage will be deducted from the amount you can borrow.

If you are just after a small amount then either the mortgage or for just £15k how about a personal loan and pay it back in 5 years?

DVardysShadow

There may be a problem borrowing as little as £15000 - many lenders have a much higher minimum. A lot depends on how quickly you can pay it off - it may be worth taking a flexible mortgage for the lender's minimum on interest only with the ability to pay off in part or in full as and when you choose. The interest rate will be uncompetitive in headline terms, but it will most likely work out cheapest if you can use the flexibility not to borrow money you don't need.