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Mortgage or Personal Loan

Xenon
Xenon Posts: 276 Forumite
Part of the Furniture 100 Posts Name Dropper
edited 1 March 2013 at 12:47AM in Mortgages & endowments
Newbie looking for some helpful advice please.
I have just started to dip my toe in the murky waters of home buying.
Renting at the moment.
Living in Edinburgh looking to buy in Lothians or Fife.
I have £64,000 savings for deposit.
No loans or debts
Looking at properties between £50,000 to £100,000
I have seen an Independent Mortgage Adviser and have a Decision in Principle - (Nationwide).
I am in full time employment approx £22,500 (after tax)

So the question is Mortgage or Personal Loan ?
Would i even be able to get a loan of approx £5000-25,000?
If Mortgage would it be better to go for 5yr ?
Or just buy a place with the savings - then save up buy again?

Forgive my ignorance this is all new to me.

Comments

  • Wh05apk
    Wh05apk Posts: 2,938 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    No problem getting a mortgage for that amount, interest will likely be a fraction of the cost of a personal loan.

    Because of the amount avoid paying any arrangement fees simply to achieve a lower rate, you will never recoup the cost, also not worth paying a broker fee, as on a small mortgage, the difference between the best and worst rates will only be a few pounds.
    I am a mortgage adviser.
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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