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Further Borrowing or Loan?
judgemasters
Posts: 1 Newbie
I currently have 2 mortgages on my house (both with the same bank) and need to borrow approximately £9000 more for home improvements.
I've contacted my mortgage company and have been quoted an extra £63/month to add the £9000 to my mortgage repayment over 23 years.
The cheapest unsecurd personal loan I can find the the Bank of Scotland where £9000 works out at £211/month over 4 years.
It is my plan to remortgage in approx 2 years when both of my fixed term periods finish on my mortgages to combine them into one.
Which is the best option to take? Lower repayments for 2 years and then consolidate the debt on my home or higher repayments for 4 years and have less secured debt at the end of the loan repayment term? What shall I do? :rolleyes:
I can afford the £211/month but obviously will miss it!
I've contacted my mortgage company and have been quoted an extra £63/month to add the £9000 to my mortgage repayment over 23 years.
The cheapest unsecurd personal loan I can find the the Bank of Scotland where £9000 works out at £211/month over 4 years.
It is my plan to remortgage in approx 2 years when both of my fixed term periods finish on my mortgages to combine them into one.
Which is the best option to take? Lower repayments for 2 years and then consolidate the debt on my home or higher repayments for 4 years and have less secured debt at the end of the loan repayment term? What shall I do? :rolleyes:
I can afford the £211/month but obviously will miss it!
0
Comments
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If you can afford the £211 a month, then it makes sense to go for a unsecured loan with BoS. I believe they have 6.4% APR on offer, although http://www.moneybackbank.co.uk/ and https://www.yourpersonalloan.co.uk/ are offering 6.3% APR currently.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.0
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