Loan or mortgage? Abbey

ni_bride2b

Hey there!

I've read loads on this site but never really posted! i'm looking some advice from you very talented lot :T

I am a first time buyer and am buying a house for £42,000. I have a deposit of £27,000 which means I only need to borrow £15,000. Would it be worth taking out a personal loan instead of a mortgage?

I've been offered a 5year fixed mortgage with abbey at 2.99% no fees for 25 years. Also, is it better to have a shorter loan time I.e. 20 years or less?


Thanks for help! I've been wading through forums and articles and just getting more stuck!

Any advice appreciated!

_Andy_

Personal loan = higher rates
Mortgage = lower rates

£15,000 mortgage = less choice of mortgage provider

Shorter the term = higher the monthly payment but less interest paid overall