Borrowing £10000

yaweh · 8 April 2015 at 3:30PM

Hi i am looking to borrow £10000 for home improvements.What are the pros and cons of borrowing on my mortgage as have never been down this route before.All feedback would be appreciated.

wiltsguy_2 · 8 April 2015 at 3:36PM

against your home may get you a better interest rate as it gives the lender security, but its against your home....

Tixy · 8 April 2015 at 3:39PM

It is likely to be a lower interest rate if secured against your house against your house, assuming that you have sufficient equity in the house.

But you are putting your house at greater risk if you suffer financial difficulties/a change in circumstances.

It is also likely to take a bit longer to obtain a secured loan than unsecured.

If you do look to borrow against the property don't be tempted to borrow over a longer period than necessary (say to the same term as an existing mortgage).

andyfromotley · 8 April 2015 at 3:47PM

and remember lower rate or not, if you take it over the same length as a long mortgage it will cost you a fortune in interest over the long run.

If you are creditworthy there are some very personal cheap loans about at the moment which in APR terms are pretty close to most mortgages. You will need to pay them back quicker generally so will cost you more each month but have the HUGE advantage of not being secured on your home.