Remortgage or Unsecured Loan?

Mrp

I am looking to borrow £20-£25k and pay this sum off over a 5 year period. I would like a 'fixed' deal so that repayments remain constant throughout the term. Not too sure what is the best means of financing this debt. We paid off our mortgage approx 5 years ago (property value £600K) and I have no other debts etc. (I am 48 years of age).

Can I remortgage such a low amount or is £50k typically the minimum? What with all the associated fees (both revealed & hidden in small print!) payable for commencing/finishing a mortgage, would it be simpler/cheaper if I went down the unsecured loan route?

So many products to chose from - don't quite know where to start or who to contact!

Thanking you in anticipation!

dimbo61

Have you looked at the 5 year fix at 4.59% from First Direct which has low fees or you could look at an offset deal and borrow extra which you then pay into the offset account

Mrp

Many thanks - will check out their deal today.

kingstreet

Nat West has a direct deal fixed at 4.69% until 30/4/2016. It is fee-free, so no arrangement fees, no valuation fee and legal costs are covered for you.

Over five years, a £25,001 mortgage would cost £468 per month.

Check T&Cs as remortgages on unencumbered property are sometimes tricky and they can charge for legal work. I used £25,001 as many lenders set this as their minimum and the NatWest deal doesn't show on Trigold if the amount is input as £24,000.

Some lenders may have restricted uses for the loan - ie no business start-ups.