5% mortgage??

jamie304

I am in a bit of a strange position in that I have 260K cash from a house sale, and am looking to buy another house for around 265K, however I would need some kind of loan to pay the extra 5 thousand and stamp duty. As my credit rating isn't that hot (1 4-year-old default, repaid in full though) I was thinking I would need to get a secured loan or mortgage. However I am not sure it is wise to secure a 256K house against a 15K loan? Also do you think I can get a normal market rate due to my default? Is it worth seeing a broker about this?

mleonard79

I don't think you can get a mortgage for less than £25K so you may have to look at loans but with your history I would definitely seek some professional advice. I'm sure some of the more expert mortgage bods on here will be able to give you a more definitive answer but I wouldn't like to secure my house against such a small loan if I could help it.

roswell

A easy option will be get flexi morgage or a one with no repayment penalties / offset borrow 55K or simililar then make a massive overpayment leaving you with 5k outstanding.

payless

Loans for home purchase can be done for less than the CCA £25K limit , but some lenders won't do it and put on their minimum limits

A deal with low fees will likely be better than a lower rate .... just a number crunch

Worth comparing with a personal loan.( if yuou can afford the usually shorter term) .. rates might be a little higher but less fees , plus unsecured , or as suggested a larger loan with offset OR drawdown option might be flexible if not a temptation