Mortgage or loan?

wendyloub

I am hopefully nearing the end of my divorce, and have offered my ex 20k for his share of the house, the house is mine and I live in it with our children, I'm just praying he takes this now, and doesn't wait till kids are older for even more!!

I have saved up around 5k, and need to bo rrow the rest, my aim is to pay it off as quickly as I can, paying all my spare cash in every month, so what do you think?

Senior_Paper_Monitor

Have you asked the mortgage company whether they will accept you holding the mortgage on your own - or whether another lender will accept you on the basis of your income ?

You make no mention of amounts (borrowing, LTV, other loans or expenditure, income etc ) other than you need to to increase the borrowing by £15,000.

wendyloub

Hi my bank have said they will give me a mortgage of 20k or even more based on my income, which about 24k made up mostly of working tax credits, I have no debts at all, and have been saving around 300 per month over the last year, I don't have rent or a mortgage at present, so manage quite easily, and I'm as tights as a nats bum as they say!

Senior_Paper_Monitor

Mortgage will be cheaper than loan - should be possible to get very attractive rate at moment - medium term fixed (unless you feel there is any lijkelihood of moving) and make the permitted (probably 10% of capital) overpayments, using a 10 year (maybe a little less) period and you will be well within your current saving budget.

Concentrate on no/low fees/charges mortgages rather than absolute rate.

Only possible 'fly in the ointment' is your prime source of income which is a problem to some lenders - but generally easily doable.