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Mortgage vs loan
Jazzmonkai
Posts: 2 Newbie
Hi all,
Dilemma - need to borrow £30000, complicated situation but that's the amount.
Tried to apply to my current mortgage provider who agreed a new deal for our existing borrowing and were going to add additional borrowing on the same deal. All good, until they then declined the additional borrowing.
What's best to do? As I see it, the options are:
1) Accept a lower additional borrowing amount and seek to get a personal loan to cover the difference.
2) Remortgage elsewhere, accepting that I now have to also borrow to pay the ERC of nearly £3000.
3) Use a homeowner loan.
4) Both me and my partner apply for personal loans to make up the total (we are married with joint mortgage, I'm employed, she is self employed so unsure about this option).
Love to hear thoughts from some more experienced moneysavers!
Dilemma - need to borrow £30000, complicated situation but that's the amount.
Tried to apply to my current mortgage provider who agreed a new deal for our existing borrowing and were going to add additional borrowing on the same deal. All good, until they then declined the additional borrowing.
What's best to do? As I see it, the options are:
1) Accept a lower additional borrowing amount and seek to get a personal loan to cover the difference.
2) Remortgage elsewhere, accepting that I now have to also borrow to pay the ERC of nearly £3000.
3) Use a homeowner loan.
4) Both me and my partner apply for personal loans to make up the total (we are married with joint mortgage, I'm employed, she is self employed so unsure about this option).
Love to hear thoughts from some more experienced moneysavers!
0
Comments
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The purpose of the funds will be an issue for any mortgage lender. If not for "home improvement" then the application may well be declined.0
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1) What is the purpose of the extra funds?
2) Why were you declined?0 -
Key question as above, you firstly need to understand why you were declined as that will certainly be a factor before any solution can be preferred.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
Thanks for reading folks. "debt consolidation" is what they termed it, which never reads well.
Basically we were gifted some money for our first deposit. Now we want to give that money back as we can afford to (in terms of monthly repayments). I'm guessing lenders don't look favourably on this.
Santander didn't feel the need to tell us why it was declined, only that it had been.0 -
Jazzmonkai wrote: »Thanks for reading folks. "debt consolidation" is what they termed it, which never reads well.
Basically we were gifted some money for our first deposit. Now we want to give that money back as we can afford to (in terms of monthly repayments). I'm guessing lenders don't look favourably on this.
Santander didn't feel the need to tell us why it was declined, only that it had been.
Gift is supposed to be a gift, if its a loan then e original application was technically fraudulent.
Can you return the money in installments like a mortgage?0
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