We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Re Mortgaging or a Loan
stephenjames_2
Posts: 6 Forumite
Hi all
I want to lay my hands on 10 grand to pay for home improvements (replace a conservatory).
I thiought i might remortgage, my current Mortgage is a HSBC variable rate that is set at 1% above the base rate. so currently my mortgage is 1.5%.
I called HSBC if i remortgaged for a similar mortgage they want 3.5% (approx) so im thinking they going to charge me a lot more over the remaining 17 years of the loan.
Iv looked a t a unsecured loan (Tesco seems cheapest) at 7.8% apr.
this loan is well affordable over 5 years.
Looking at the interest rates, im thinking its best for me to go with the unsecured loan.
Im just looking for a bit of advice, it seems obvious to me, but HSBC dont seem to be very helpfull.
cheers guys
I want to lay my hands on 10 grand to pay for home improvements (replace a conservatory).
I thiought i might remortgage, my current Mortgage is a HSBC variable rate that is set at 1% above the base rate. so currently my mortgage is 1.5%.
I called HSBC if i remortgaged for a similar mortgage they want 3.5% (approx) so im thinking they going to charge me a lot more over the remaining 17 years of the loan.
Iv looked a t a unsecured loan (Tesco seems cheapest) at 7.8% apr.
this loan is well affordable over 5 years.
Looking at the interest rates, im thinking its best for me to go with the unsecured loan.
Im just looking for a bit of advice, it seems obvious to me, but HSBC dont seem to be very helpfull.
cheers guys
0
Comments
-
why dont you take a futher advance with HSBC for 10k @ 3.5% over 5yrs0
-
VIGILANT22 wrote: »why dont you take a futher advance with HSBC for 10k @ 3.5% over 5yrs
this is a good suggestion.. will prob be cheaper that wayThanks to all who post here:beer:0 -
VIGILANT22 wrote: »why dont you take a futher advance with HSBC for 10k @ 3.5% over 5yrs
are lenders more likely to match a remortgage\fixed\svr rate when it comes to further advances? Reason I ask is as you saw from my other thread, am in a similar position to OP but I am going onto SVR this October so was wondering if they did offer further advance, what rate they would go closer to0 -
VIGILANT22 wrote: »why dont you take a futher advance with HSBC for 10k @ 3.5% over 5yrs
can i just hijack this thread and ask if you can get a further advance with most mortgage lenders? and does it mean you need to meet LTV criteria etc? as i would also like to borrow around 12k (to pay of existing unsecured loans) and pay a cheaper rate/singe payment as i have 2 unsecured loans ( i calculated im paying aprx 30% on top of what i borrowed if i carry on paying the full 7 yrs)
cheers0 -
Most lenders offer a further advance as long as it/you fits criteria...the rate applicable is what is available at that time...you dont have to take it for the same term as the mortgage..shorter if affordability allows..0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.8K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.2K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards