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loan or to remortgage
Comments
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How long is a piece of string?
Sorry but to advise we need a little more information.
What is your loan to value ratio on your mortgage?
How much do you earn - how much can you afford monthly?
What other obligations do you have??0 -
I wouldnt secure anything against my house, so if it was me, i would get a loan.0
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A remortgage can come with high fees and the 6k would end up 30 over the long term. A loan can be paid back in whatever time frame you can afford and would be far far cheaper in the long run.0
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my mortgage stands at £90,000 - my house would be worth £160,000 and I earn £30,000. My mortgage repayment is £480.00 month .0
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If you prepare a proper budget for yourself, you will be able to see what disposable income you have to put towards loan repayments. If you are completely sure that your job is safe in these uncertain economic times, get a loan that is affordable within your budget.
Alternatively, and this is what I did - pay the 'loan' money into a different bank account, and save up for it. Throw all your spare pennies into it, and pay for the new kitchen when you have the money to afford it. You won't have gotten bored of the colour/tiles/cooker before you've finished paying for it, and you won't pay the extra interest either.Some days, it's just not worth chewing through the leather straps....
LB moment - March 2006. DFD - 1 June 2012!!! DEBT FREE!
May grocery challenge £45.61/£1200 -
Never take on debt that lasts longer than the asset. I would suggest remortgaging to buy a kitchen would be a bad idea if your mortgage has more than 10 years to run. Better to get a loan.
Even better would be to save up and don't pay interest on top of the cost of your kitchen. Depending on your other commitments, you should be able to get there in a year or two.I've got a plan so cunning you could put a tail on it and call it a weasel.0 -
Personally I would do neither, I would save. But out of the two options you are asking about, I would go for a loan over re-mortgage.YNWA
Target: Mortgage free by 58.0 -
A £6,000 loan over 36 months with Sainsburys would cost £188.50 per month based on their representative APR.
If you remortgage to the £96,000, you'll still be at 60% LTV (if your valuation is correct).
I'd remortgage to a better deal - such as Brittania or the Co-Operative Banks 2.59% Lifetime Tracker. This should be fee-free.
Then I'd add the £188.50 repayment that I'd have to make to Sainsburys if I took out the loan to the mortgage repayment of £480 giving a total repayment of £668.50.
I'd commit to this repayment for the life of the mortgage (if you can't do this, you shouldn't be considering taking a loan in the first place).
This would reduce your mortgage term to 14 years.
This is all assumming that the rate you're on at the moment is worse than 2.59%. If your current rate is better than this, don't remortgage.0
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