The best way to borrow £20K?

themull1

Insert the word ' could' between you and try!!

HappyMJ

I don't understand why unsecured lending can't be used to buy a property yet an unsecured personal loan can be taken out to spend the proceeds on a holiday which has no value once taken.

I suppose you could say you are using it to refinance your debt if you used your credit card to buy the property then use the loan to pay off the credit card. You wouldn't be lying as you would now have a credit card debt that needs repaying. Nothing in the T's and C's dictate how long the debt on the credit card needs to be outstanding for or what you used the cash on the credit card for. Of course if it's not approved then you're now stuck with a credit card debt. I'd go for a 0% balance transfer offer and use a super balance transfer card to get the money into your current account as cash so you have plenty of time to find a good loan deal.

AndyT678

CookieMonster wrote: »

I don't want to go down the buy to let mortgage route

Why not? This is the tool that is specifically designed for the job that you want to do.

Personal loan interest rates will be higher than a mortgage meaning that more of your income will go on interest and you will have less left for capital repayment. I don't see what the advantage is.

Plus using personal loans for commercial purposes might well be against the T&Cs.

Thrugelmir

HappyMJ wrote: »

I don't understand why unsecured lending can't be used to buy a property yet an unsecured personal loan can be taken out to spend the proceeds on a holiday which has no value once taken.

Lenders make the rules that's why.

chambta

I don't see why Nationwide won't allow you to do a further advance for the 20k for this purpose. Two year fixed rate, then remortgage the lot elsewhere at the end of your 10 year fix.

Whiner

Thrugelmir wrote: »

Lenders make the rules that's why.

Correct, but utterly unhelpful.

DCFC79

Whiner wrote: »

Correct, but utterly unhelpful.

And how is your reply helpful ?