Loan now or later?

bratcatcher1

In need of advice....

I need to borrow 6k but am unsure of the best way to go about it. There isnt a great rush for the money and wasnt sure whether the budget changes due to come into play will raise the prices of loans making it better to take out now?

Also our mortgage comes up for renewal next April and Im concerned what effect a loan would have on it. It will go to the SVR in April so will be much cheaper so again Im unsure that we will change it straight away anyway. I dont know if a 0% credit card would be a better option if we keep moving it?

Other than the mortgage we dont have any other debt or a credit card and our income is good, we dont miss payments for anything so our credit rating is ok. I'm unsure of the way forward as I dont want it to affect our mortgage. My husband has suggested borrowing it with the mortgage but this sounds expensive if you are paying it off over 25 years!!

We are very cautious moneywise but have no clue of the best way forward.

Any advice would be great!! Thanks

HappyMJ

With sufficient equity you can borrow the money on a mortgage if needed and ask the bank for a repayment schedule that will have the extra paid off on in lets say 5 years or whatever you choose. You don't have to pay it off over the full 25 years.

You might even get used to paying an extra £100 per month and keep it up afterwards thereby reducing your 25 term even more.

bratcatcher1

Yes that makes sense, thank you. I didnt realise you could ask to pay that portion off at a quicker rate and this is probably a good option for us if we have enough equity in the house which is probably borderline whether we do or not.

I suppose the only concern I would have is that if the mortgage is reverting to the SVR and interest rates are still low then our mortgage payment will reduce significantly after April (although we would plan to pay the same and get more paid off) but this would mean we wouldnt change the mortgage for some time necessarily and while the money isnt urgent, the sooner the better really!