Advice/opinions needed re secured or unsecured loan please!!!

licklebabba

Hi all, I would be very grateful of some opinions/advice re what kind of loan to get,as me & hubby are very confused! We want to borrow £10-15k to do some work to our house & other bits(newer car??)we both work & our outstanding mortgage is just over £43k with 11 yrs left. We both have small individual loans totalling just over £3k (for both)which will finish the beginning of next year. We don't know whether to add the £10- £15k to our existing mortgage or take out an unsecured loan over 5 years?? It seems like a bloomin minefield out there:eek:.Which option is more sensible??? I am giving myself a headache!! many thanks for reading & any advice/opinions offered:)

Tixy

Generally unsecured loans are prefered over secured loans as with a secured loan you are at a greater risk of losing your property should you lose your income for any reason.

How much is your house worth?
How much do you both earn?

licklebabba

Cheers Tixy, I had thought that,as am a wee bit of a worrier:o! I earn £15k, OH just under £20k ,house worth 87k (as of last yr when it was valued).

Apples2

A loan of that amount would have to be joint. Neither of you earn enough to absorb a £15k loan on your own.

With a combined £35k Salary coupled with an existing £3k debt you are in the right area to be accepted (perhaps a little too high for £15k). Do you have Credit Cards? bear in mind they will consider your credit limits (even though you haven't used it) and put that alongside the £3k you already owe.

Securing loans should be a last resort, you most certainly don't want to lose your home if it all goes wrong. Risking your home for a second hand car is not worth it.

licklebabba

Cheers for that apples2, loan will be a joint one & we will look at unsecured ones,as looked at how much interest you have to pay for secured one over time,:eek: & I wouldnt be able to sleep really if thought anything coul;d happen re a repossession etc:eek: many thanks for replies:)