Want a 10 year unsecured fixed rate loan

Karence

Am I asking for the impossible? Would like to borrow max £15k for an extension and mortgage company are useless A&L (Santander products) will only offer variable loan which they say we may be able to renegotiate.

We ideally want low payments per month, which a 10 year loan would give us, but they seem to be rarer than hens teeth. Have seen that Tesco offer one, but the reviews are very bad and I have a personal grudge with Tesco and would rather not use them.

Any ideas, really appreciated.

Thanks in advance
Karen

opinions4u

Remortgage to a new lender.

Karence

I don't want to do that as I am in a fixed mortgage product until 2014 on a very good rate (under 4%) and the redemption fees would be nearly £3k plus a blooming redemption admin charge!!!

BoGoF

Without knowing the full facts, income other debts etc it is impossible to say. But I would say don't limit your options by having a 'grudge', I've never understood that mentality when it comes to money.

paddyrg

If the loan is for property improvements, why do you want it unsecured? I would imagine your options are better if it is secured? Am I misunderstanding?!

Karence

Thanks peeps, I read this forum a lot, but I have rarely written anything to the forums, so I do appreciate your time. Aside from our monthly credit card bill (which we pay off in full) we have a loan which ends next month and no outstanding debts aside from the mortgage.

Okay, I could push aside my principles re. Tesco and take a loan with them, but I looked for reviews for the Tesco loans and they weren't encouraging. Every service I have used through Tesco has been dire and I know they shouldn't be able to !!!! this up, but it will take a huge leap of faith on my part to believe it will all okay.

A friend who is a financial adviser, said not to go the secured route - as it is a effectively a second charge on your property and a risker proposition.

I'm looking to borrow between min £12k-£15 but I want the repayments low (ish) per month to make sure we have enough disposable income, additionally I would like a loan where you can occasionally overpay.

TIA
Karen

Tixy

Have you looked ar Natwest? Their website says they offer personal loans up to 10years for home improvements - I assume these are unsecured but haven't looked into it in detail

CLAPTON

a mortgage type secured loan will be the cheapest option so ask your mortgage provider what they can do for you

p00hsticks

Karence wrote: »

A friend who is a financial adviser, said not to go the secured route - as it is a effectively a second charge on your property and a risker proposition.

I'm not sure I understand where your friend is coming from on this - riskier in what way ? From the lenders point of view, a secured loan is less risky, hence the lower interest rate charged.

It's only risky to you if you are going to default on the loan repayments .....

Karence

Hi

We bank with the Natwest, but they have been unable to offer anything under 9.9% which seems extortionate.

Yes, our adviser said in today's economy it's best not to have a secured loan - I can understand his POV.

Our lender cannot offer us a fixed rate loan and I don't want a variable deal.

I'm being too picky maybe - we're in it for a while, just want to find a good deal that we don't have heaps of regrets about later.

Thanks again for all your help.

Regards
Karen

CLAPTON

you already have a secured loan

9.9% is a pretty reasonable rate for an unsecured loan in todays circumstances