What is our best option for borrowing £5000

VinoVeritas

Our roof is leaking. We have had several quotes to get this repaired and I have approached our mortgage company about adding the loan to the existing mortgage. I have the paperwork for this but I'm hesitating because I'm wondering if there are better options. Our mortgage company will give us the money at their SVR - 5.5% This is a higher rate than our existing borrowing is on, as we're in a discount rate currently. So, for a small amount, it adds quite a bit to the mortgage payments each month. There would be no tie in, so when we remortgage at the end of our discount period, we could ensure that the £5000 is included with the current balance and all on the same rate. But we're stuck with SVR until then - plus there's all the arrangement fees.

I was looking at personal loans - obviously higher APRS but we'd be paying the money back over a shorter period so less total interest. What a people's thoughts about a 0% credit card in this situation? I would need to check whether our selected roofer could accept a credit card payment but I would suspect not so I suppose I'm looking at a money transfer card. Are there pitfalls I need to be aware with these (I've read the guide on MSE about them - it was the first time I'd heard of them to be honest)? We already have a Barclaycard in husband's name which we pay off via direct debit each month.

Any thoughts on our best option (other than a bucket under where the water is coming in, which we're already doing!)

[Deleted User]

A money transfer option would be a decent option, but only if you can pay off before the promo offer expires. You'll also have a (typically) 4% fee to pay, so there would come a point when a giher rate loan would be cheaper (as the interest is paid on the daily balance, rather than the full amount up front).

So you'll neeed to do your maths to figure out the best option.

Tixy

I wouldn't borrow it secured over long period.

You may well find that a personal loan APR wouldn't be more than the rate the mortgage company is offer.#

Or look at a money transfer.

Or even if you did borrow as a secured loan - don't do it over the rest of your mortgage term, still repay it over a few years (as few as you can afford)

VinoVeritas

Thank you both. I'm coming round to the idea of borrowing it over a shorter period. We need to remortgage in August so that's a consideration too, as we don't want something else affecting the affordability factor but we really need the roof sorted before revaluation!