Need to borrow £2500 for up to 2yrs - best solution

bdfenwick

I'm looking to borrow £2500 for home improvements and don't want to put it on my mortgage (way too much interest over too long). I only need to borrow it for up to 2 years as I can afford to pay £180-£200 per month.

I'm not really an expert on Credit Cards but wondered if anyone knew how they compared with the best loans (about £400 interest over that period).

Only problem I could see is that I need to withdraw cash to pay. I know they charge heavily for cash but could I do it on a credit card I already have and then transfer to a 0% balance transfer before I incur any interest charges.

I am a homeowner with a decent credit rating.

Thanks in advance.

Bruce

originalmiscellany

You say way too much interest, but if you add it for 2 years then immediately pay it off (if your mortgage allows) that could be a good way of doing it...

Or ask family for a family loan, and set up a DD within the first day, and make a nice overpayment at the end e.g. take them out for a meal when you've repaid them.

Or get a CC with interest free period of say 18 months, then put all purchases on it - thus no fees for withdrawing cash.

I would suggest the order goes:
Family
Extend mortgage
Get an interest free CC.

ses6jwg

UPLs under £5000 usually attract an extortionate APR.

As has been said a 0% on spending credit card could be an answer, use that for your everyday spending, then you will have more cash in your bank to draw down on.

poppasmurf_bewdley

Don't want to put a damper on your plans but when you say 'need to borrow' for home improvements, do you mean 'want' or 'need'?

If it's only 'want', then save the money instead of taking a loan and get the work done in a year or so when the work is done, and save all that interest.

heathcote123

bdfenwick wrote: »

I'm looking to borrow £2500 for home improvements and don't want to put it on my mortgage (way too much interest over too long). I only need to borrow it for up to 2 years as I can afford to pay £180-£200 per month.

I'm not really an expert on Credit Cards but wondered if anyone knew how they compared with the best loans (about £400 interest over that period).

Only problem I could see is that I need to withdraw cash to pay. I know they charge heavily for cash but could I do it on a credit card I already have and then transfer to a 0% balance transfer before I incur any interest charges.

I am a homeowner with a decent credit rating.

Thanks in advance.

Bruce

Like OM says, you can usually overpay mortgages by 10% pa without penalty,so if it's easy & cheap to pop it on your mortgage thats probably the best way & make overpayments for a couple of years- however if it involves fee's these would probably outweigh any interest rate consideration.

INcidentally, beware builders that only work for cash...