5% or 10% unsecured loan on 100% mortgage??

saintbeattie

I have 2 mortgage offers on the table from Northern Rock. It is a 100% mortgage on a flat for £132k. Basically the options are;

95% mortgage, 5% unsecured loan at 6.49% or,
90% mortgage, 10% unsecured loan at 6.29% - both fixed for 5 years.

The 6.29% is obviously cheaper and therefore looks most appealing. I am after advice on which option is best.

Cheers..

silvercar

do those rates apply to the unsecured loan as well as the mortgage, normally unsecured loans have a higher rate.

saintbeattie

That applies to the mortgage and loan. Its basically a 100% mortgage at 6.29% or 6.49%, with either 5% 0r 10% unsecured.