Wether to borrow or take out mortgage?

rias_2

Have just put my bungalow on the market and hope to buy one weve seen. We dont have a mortgage but Halifax have our deeds in deedstore, the problem is that there is a difference of £40000 gap on the property we want and we can cover half of that with savings, next May 2006 I have a flexibond maturing which will cover the other half, trouble is wether to get a loan or a short term mortgage for this period.

johannamse

Depending on how much you earn/ how much free income you have / how organised you are but have you considered doing 0% Credit cards? I would think getting such a small amount on a regular mortgage is not very cost effective? You could end up paying 5% in fees etc? What about the Cahoot 0% flexi loan? Don't feel you have to borrow the whole amount from one borrower. Just borrow at the lowest rates you can. You could save hundreds.

rias_2

Thanks for that but perhaps £20k is a bit too much on 0%credit cards, will look at the cahoot option though. I am retired but have savings and investments tied up on long term ie 10 yrs but they mature at different times and I have a reasonable pension

MiserlyMartin

Gosh! Take out a mortgage for sure! The APR on the mortgage will be lower than a loan, I can't see you getting a 20K loan on 0% APR. Get a flexible mortgage with no tie ins or fees for early repayment. Nationwide is probably your best bet for that.

PS. you shouldn't have to pay any Mortgage Indemnity Guarantee fees on the mortgage as your LTV is going to be so low.

bridiej

I've moved this into Mortgages as you'll probably get more response in here

Bridiej

herbiesjp

I do think a cheap discount/tracker with no ties and low fees may be the better option, but difficult to say without knowing the full picture.

MarkyMarkD

I agree with the last post - you don't need flexibility, you just want a product with no repayment penalties and no up-front fees (because your loan is small and because it will be for the short term). No particular reason why Nationwide will be any better than any other lender for those circumstances.

rias_2

Thanks to you all, have managed to get a flexible mortgage with Halifax at 4.89% and good interest only payments. With no early repayment penaties