55k Loan options

via_2

Hi,

I'm looking at the moment for the best options if I wanted to borrow 55k to buy a house abroad. I am going to be buying it with my brother. We currently own house with no mortgage which is valued at about 500k. I have no debts and about 10k in savings. My brother has around 15k in debts and no savings.

I was thinking the best option would be to take seperate loans for 25k and make up the rest from savings, from someone like abbey. But i suspect that my brother would have some problems getting anyfurther money because of his existing debt?

The other option would be a remortgage of some sort for the whole ammount.

Any advise as to the best way to proceed or for other options would be gratefully received.

tom188

A remortgage would almost certainly be the cheaper option, Loans are expensive in comparison, particularly for those in debt (if they can get them at all).

Rafter

Agree with Tom, a Mortgage would be the best option.

Advice though:

Make sure you shop around to get the best currency conversion rate.

Be careful about borrowing in £ to fund a purchase in Euros or other currency - a swing in exchange rates could work against you.

You may be better off taking out a mortgage on the new property overseas in local currency both for tax reasons and to protect yourself from interest rate rises.

If you bank at somewhere like Barclays or HSBC with significant European operations, they have teams who may be able to advice you on your best options.

R.