secured loan or further lend on mortgage

sandybarrow

Please can anyone help, i'm new to this forum,
We are desperate to finish our house renovation. As is the way we went over budget and due to unforeseen problems we now need to raise 25k. A few weeks ago i approached our mortgage lender Abbey for a further lend, Abbey said we looked good for the loan and offered me a good rate around 5.5% although when it came to the credit search a late payment of two days on barclaycard last November has meant that they wont take it any further (other than this our credit rating is excellent) Although they will consider us again after a year ie November 2012. My question is should we take a secured loan of 12k now and then approach Abbey in November for the rest as a further lend or just swallow the high fees on the secured loan and borrow the 25k now. The secured loan is quoted as between 6.9% and 8.9 % APR. Can the percentage go any higher than 8.9%. Many thanks

CLAPTON

what secured loan
what loan for 12k
what loan for 25k
what fees
what company

sandybarrow

Hi,
I have a quote for 25k through an advisor that i have used for a long time. His contact is shawbrook bank for the secured loan:

borrow £25,000
fees £2980
total £27,980
monthly repayment £215.25 over 240 months
Total repayment 51,660.00
APR 8.70%

I've asked what the redemption fees will be and am waiting for a reply.

sorry if i didnt make myself clear but i was considering reducing the secured loan amount to 12K with Shawbrook now as we desperately need to pay the builder and then in November approach Abbey for a further lend of 12k or would we be better taking the whole 25k now as the secured loan, i'm worried that if we split it when we go back to abbey they might decline us!
Thanks

CLAPTON

you need to be absolutely sure whether the APR is variable; if it is check exactly when it can change

obviously you have read their website

usually it is necessary to gain the consent of your mortgage provider before a second charge (i.e. secured debt) can be out on the property

sandybarrow

Thanks
The quote for the secured loan states: interest rate variable 6.9% APR 8.70%

But later on in the quote it states: subject to a credit search the rate could be as low as 6.99%

THEN STATES "The overall cost for comaparison is 17.5%"

Should i expect a very high rate as i have that one late payment on the credit card??
Are all secured loans variable?
Have contacted the broker to find out how the rates may change?
Scary stuff i've only ever been on a fixed rate! Also wondered if it might be worth trying to remortgage we are on a fixed rate 3.99% till June 2014 and realise there would be penalties!

I have a loan to value of 52%