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Cheapest way to borrow money?

boo80
boo80 Posts: 482 Forumite
in Mortgages & endowments
Hello money savers.

We're looking to buy a house outright, but (as always) that next rung of the ladder is very enticing. If we have 200k and want to buy for £215k, is a mortgage our best bet, or would we be better off with a loan, or something else? Sorry if this is a silly question, I'm really awful with financial stuff!

Comments

  • boo80
    boo80 Posts: 482 Forumite
    Oh and my partner has a credit rating of 999 if that makes a difference? Mine is probably about 2 haha
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    boo80 wrote: »
    Oh and my partner has a credit rating of 999 if that makes a difference? Mine is probably about 2 haha

    Why is your "score" 2? That would be something quite serious.

    If you don't quite have enough you'll need a mortgage to buy a house. You may need to borrow more than you actually need to meet the minimum mortgage requirement. Usually £25,000. You can put the excess into a high interest current account until the end of the fixed term has expired then you can pay the excess off the mortgage.

    If you have enough credit available on credit cards you could take cash advances but I would think that would be much more expensive than getting a mortgage.

    If you apply for a personal loan they will decline the loan if you say it's for buying a house.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • mrs_T
    mrs_T Posts: 1,017 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    0% credit card if you can pay back in time?
  • boo80
    boo80 Posts: 482 Forumite
    HappyMJ wrote: »
    Why is your "score" 2? That would be something quite serious.

    Sorry, I was being silly, my credit rating isn't great as I have old debts, I've no idea what my actual score is though.
  • d70cw6
    d70cw6 Posts: 784 Forumite
    bloke down the pub
  • d70cw6
    d70cw6 Posts: 784 Forumite
    boo80 wrote: »
    Sorry, I was being silly, my credit rating isn't great as I have old debts, I've no idea what my actual score is though.

    your credit score is 8397.
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    boo80 wrote: »
    Sorry, I was being silly, my credit rating isn't great as I have old debts, I've no idea what my actual score is though.

    You have £200k in cash yet you have debts? Pay the debts off unless there is a reason you're not paying them off.

    Get your free credit report and the free "score" from Noddle and Clearscore. The score doesn't really mean anything but if it as low as you say then there is something seriously wrong and you'll need to resolve that before considering applying for any credit.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Cheapest money is true 0% there is some about
    CC with balance transfer is probably next.

    All depends on cash flow.

    Larger mortgage offset/unlimited overpayment can work out good if you have the cash flow.
  • DCFC79
    DCFC79 Posts: 40,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    boo80 wrote: »
    Sorry, I was being silly, my credit rating isn't great as I have old debts, I've no idea what my actual score is though.

    Your score whether 999, 8397 or whatever a random guy in the pub says isnt seen by lenders just you alone.

    Good luck with the house purchase.
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