Small mortgage or large loan

Poppy1785

Hi everyone. New here so hope we can both help each other.

I need to raise 65k I can manage deposit of 20% maybe 25% its to buy a small flat. I was also thinking of a loan I really want to pay off as soon as possible so whatever the quickest route. Anyone help me out.

Regards
Poppy

dealer_wins

Ummm .............. a mortgage

As long as you have a 3+ year employment history with a salary of £20K or higher

Rafter

as DW says, the maximum you can generally borrow as a normal loan is about £25,000 and then you would need to be earning at least 3 times that for the bank to take the risk.

So a mortgage is the way to go and if you really value flexibility to repay it earlier then I would go for an 'offset' that will allow you to make as many overpayments as you like.

Remember too that most people don't stay in the same property for 25 years or stay with the same mortgage company for that long, so just because it is a '25 year' mortgage doesn't mean that is how long you have to keep it. Generally once any 'early repayment charge' period has expired, you are free to switch to another company.

The cost of switching is not 'free' though - you will have to pay any termination fees plus application fees for your new loan. So it is worth finding a mortgage company with a good reputation that you plan to stick with - an independent mortgage broker would be the best place to talk you through your options.

Good luck

R.