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£20,000 mortgage V bank loan?
gavndee
Posts: 1 Newbie
We have sold our house and are looking to buy another. The upshot is that there is a £20000 difference which we will need to borrow to move in.
My question is, would it be better to get a mortgage for this amount or just get a bank loan for the same amount, if possible.
Which would be the cheaper option and what about pro's and cons?
Your thoughts are greatly appreciated.
My question is, would it be better to get a mortgage for this amount or just get a bank loan for the same amount, if possible.
Which would be the cheaper option and what about pro's and cons?
Your thoughts are greatly appreciated.
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Comments
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A mortgage would be the cheapest option. Though £20k might be to low a sum to interest some lenders.0
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We have sold our house and are looking to buy another. The upshot is that there is a £20000 difference which we will need to borrow to move in.
My question is, would it be better to get a mortgage for this amount or just get a bank loan for the same amount, if possible.
Which would be the cheaper option and what about pro's and cons?
Your thoughts are greatly appreciated.
Not necessarily the best option, but if you have to get a sizable mortgage amount, you could opt for an offset mortgage and use your money to offset the principal to 20k. This means that you are effectively paying interest on 20k.0 -
I don't have any info on bank loans but I had no problems taking out a £16,000 tracker mortgage with HSBC earlier this year. There were no booking fees. I had to take it out over 5 years but with over-payments it will be paid off soon.
HSBC are currently advertising a tracker, maximum LTV 60%, interest rate 2.49, no booking fees.0 -
I'm assuming the 20k is a fairly small percentage of the total loan value, so you're likely to get a pretty good mortage deal compared to a loan, which will probably be secured on the property anyway.
But then, the only way to find out is to ask the bank for a quote for each.0 -
Have a look at Coventry bs, 5 year fixed rate, £199 booking fee the rest is free. I would always recommend a mortgage over a loan, you can overpay on a mortgage.I am a Mortgage Advisor. You should note that this site does not check my status as a Mortgage adviser, so you need to take my word for it. This signature is here as i follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldnt be seen as financial advice.0
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The choice of lenders to give you £20k is going to be very low, as below £25k the legislation is different.I am an Independent Financial AdviserYou should note that this site doesn't check my status as an Independent Financial Adviser, so you need to take my word for it. This signature is here as I follow MSE's Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Thats why i suggested a peep at the Coventry !!!I am a Mortgage Advisor. You should note that this site does not check my status as a Mortgage adviser, so you need to take my word for it. This signature is here as i follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldnt be seen as financial advice.0
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