Re-Mortgage or Loan

del_piero_3

Hey guys, need your advice and knowledge on borrowing…

I am renovating my property and I need to loan 10k. Not sure whether to re-mortgage the property as it is mortgage free or get a loan as I don’t know much about borrowing, special rates, which bank to go with etc.

I can pay this back within 2-4 years but just be on safe side I’d say 10 years – never know in life, anything can happen. Also would like an option where I can pay full amount early if the money ever did come available without being penalised heavily etc. Currently I don’t have any loans or owing to anybody. My salary is about 18k....

Thanks

regularsaver1

Well it depends on what is easier to you and if you mind the possiblity of fees:

EG

1. Mortgage, As you are mortgage free you may (I saw may) have to have a valuation done and there may be an arrangement fee to do mortgage and use a solicitor to add the charge. Some products allow you to repay early with no penalty, but there is usually an administration fee

2. Personal Loan. Not secured on property. May not get a low rate as mortgage, but then not usually an arrangement fee. Usuallly maximum term is 7 years. May have a penalty of say 2 months interest to repay early.