Help

joboanna68

:oHi, I am mortgage free (Sorry!) I need approx £20,000 to do some home improvements, I am a single parent so don't have masses of income and I am totally confused. can someone help point out which way is best for me to raise capital...I am totally inexperienced and relied on my husband to crunch figures...is a loan best or can I get a mortgage even though I don't already have one help please!

dmg24

Will you have sufficient income to make the repayments?

joboanna68

yes i am just completely confused as to which is the best / cheapest option for me..and then there is the whole secured/unsecured dilemma..

opinions4u

Do you own your home in sole name? If so, mortgage becomes an option.

Do you have a clean credit history? If no, what difficulties have you had, how much for, and when?

Do you really need to do these home improvements with a loan, or could they be done over time by saving up?

How much a month are you prepared to pay?

I'd probably see a mortgage broker if I were you. It may be that some lenders have a minimum loan of £25k but if their rates are preferable this could actually be cheaper than a £20k unsecured loan. Consider borrowing over a shorter term if affordable.

joboanna68

this is the thing I didn't know if i could get a mortgage for a small amount over a short period.so that is one question answered. I
have already managed to do approx 40'000 worth of work by using savings and monthly income, but this is the last push to get things finished (it's getting me down now), it would take me a while to save things and I have a growing family who need more space than I have so although I am loathed to put my house at risk i think it is probably the way to go.

i have no other debts and a perfect credit score.

oh and yes it is sole name

opinions4u

Cheapest unsecured loan providers tend to be the likes of Tesco or Sainsburys. But they cherry pick applicants, so have a high decline rate.

£20k over 5 years would probably cost in the region of £400-£450 if accepted at the market leading rates. I would expect a mortgage for the same amount to cost around £50 a month less. These figures are guesstimates on my part though.

I'd say it's your call on which way to turn!

joboanna68

thank you I will do some investigation into both avenues