Loan/mortgage

spurdog1

Hi there all

I am getting ready to move, and I own my property outright. I am however considering a bit extra, should "the right house" come along.
Speaking to my bank, I am "too small for a mortgage" (up to 10K over 5 years),
and loans on property are not liked whether secured or not, so for a person with an excellent record so far on payments, I seem caught between a rock and a hard place.

It strikes me that, for the cost of applying for a mortgage (say £295.00 set up fee), I might be better off going for a loan (@4.15%). What options do i have, apart from lying and saying i am buying a new boiler/car? There must be people out there that I can borrow £1-10,000 over 5 years (the time to my retirement).

Thanks in anticipation of feedback.

Kev
England, location

DCFC79

Its risky applying for a loan when your applying for a mortgage soon. How far down the line were you thinking of applying for the loan ?


You mention a loan of a rate @ 4.15%, are you certain you would get this rate ?

spurdog1

DCFC79 wrote: »

Its risky applying for a loan when your applying for a mortgage soon. How far down the line were you thinking of applying for the loan ?


You mention a loan of a rate @ 4.15%, are you certain you would get this rate ?

No, I would prefer a loan...no mortgage required.
Standard loan rate for Nation bank if you catch my drift (I know links are often forbidden)

DCFC79

spurdog1 wrote: »

No, I would prefer a loan...no mortgage required.
Standard loan rate for Nation bank if you catch my drift (I know links are often forbidden)

Apologies I mis-read your post.

pmartin86

you could look for a mortgage that allows unlimited over-payments, buy your new home and keep cash from the sale of the current home, then immediately overpay the spare cash to bring the balance to the 10k mark.

Crystallady

spurdog1 wrote: »

Hi there all

I am getting ready to move, and I own my property outright. I am however considering a bit extra, should "the right house" come along.
Speaking to my bank, I am "too small for a mortgage" (up to 10K over 5 years),
and loans on property are not liked whether secured or not, so for a person with an excellent record so far on payments, I seem caught between a rock and a hard place.

It strikes me that, for the cost of applying for a mortgage (say £295.00 set up fee), I might be better off going for a loan (@4.15%). What options do i have, apart from lying and saying i am buying a new boiler/car? There must be people out there that I can borrow £1-10,000 over 5 years (the time to my retirement).

Thanks in anticipation of feedback.

Kev
England, location

You could try an off set mortgage for say £25k and put the money you don't spend (£15k) into one of offset accounts That way you'd only pay interest on the amount spent and the remainder would be there to pay off whenever you decide.

spurdog1

Methinks missed a trick. Borrow on the credit cards for a few months, then apply for a consolidation loan. Thanks for the Tip Crystallady...almost spot on.