Mortgage or loan - best value?

carnbrea

I need to borrow 23k for a vehicle purchase. I currently have an unmortgaged property and credit history, wages etc are fine. My first stop was my bank (Natwest) who would give me a fairly high interest loan but not do a mortgage small enough. Obviously need to speak to other lenders but not sure which way to go. On such a small amount if it is a mortgage would need to avoid high arrangement fees.

Was looking to borrow over roughly 8 years or with repayments about 300 ish per month.

Thoughts?

Jimbo1976

One way of getting around the minimum loan issue is to borrow the minimum (£25,000) and then simply pay back £2,000 after you complete. The other is to take out an offset deal and out the bit you don't need into your offset account.

The principle downside of getting a mortgage is that whilst it will be a lower interest rate, it will be expensive to set up.

You will also be asked the purpose of the loan, some lenders may not like to lend to help you buy something that is a depreciating asset, after 8 years your car will be worth very little

R_P_W

A loan over 8 years to buy a car? ouch that will cost you!