Mortgage or Loan

valleyviewfarm

I need to borrow £25-30,000 for 18 months to pay for a new roof. What is the cheapest way of doing this. Because of a pension maturing, I shall have the full amount to pay this off in 18 months. Can anyone help please?

fd1972uk

Guess it depends on what the APR is going to be on whatever you choose, and whatever penalties (if any) are placed on you paying early.

Is your mortgage tied to an APR at the moment? If not you have to be prepared for the APR to possibly rise.

And assume you have the means to pay a big loan at the moment in 18 months or were you going to pay it over a longer period and pay early?

valleyviewfarm

Many thanks for responding. I own two properties, both without mortgages. My pension is 18 months will entirely pay off the £25/30,000 loan.

CLAPTON

valleyviewfarm wrote: »

Many thanks for responding. I own two properties, both without mortgages. My pension is 18 months will entirely pay off the £25/30,000 loan.

you may struggle to get a small mortgage of 30k .. must be quite a big roof

valleyviewfarm

Thank you for your comment. Yes, unfortunately it is a big roof on a listed property. I don't do the Lottery and have no success when backing horses. These two options apart, I wonder if you could suggest the most cost-effective way of borrowing £25/30,000, and paying it back completely in 18 months time. Thank you very much to anyone who is kindly taking the time to read this. Not a desperate predicament, but I have got buckets all over the house and I do need a new roof.

Pixie5740

I think the largest unsecured loan you can get is £25k. If you use the MSE Loans Eligibility Calculator it will give you an indication as to your chances of being accepted for a loan that size and from whom.

I'm not sure about the mortgage option. There's usually a minimum amount that lenders are prepared to mortgage and the early repayment charges can make it an uneconomical option. There are a few mortgage brokers who post on the Mortgages & Endowments Board who know more about that than me.

Another option, depending on your credit history and other financial circumstances could be money transfer credit cards. With some credit cards you can transfer money from the card to your bank account with an introductory 0% rate for 37 months (maybe longer). Again you can find outage likelihood of being accepted here: MSE Credit Card Eligibility Checker

You might find that a mixture of a money transfer card and personal loan might be the way to go.

DCFC79

Sell 1 of the properties to fund the new roof.

robber2

Get a local builder or handyman in to patch the roof up for a few £s.
In 18 months get the entire roof replaced and pay cash for the work.

Simples

valleyviewfarm

Thank you all, but especially Pixie. Such good advice. I hadn't thought of the credit card option, which is the one I'll take. You've have saved me a lot of money, so I will forgive you for the Dickens quote . I live in one of the properties and the other provides my income, so Charlie's kind thought is not an option. Patching up maybe though. Thank you all. This is my first experience of the Forum and a very good one indeed. Best wishes, Jill

Herzlos

Might be worth speaking to your bank and see what they can offer you.