Increasing our mortgage or loan

align700

Hi All

we have a mortgage with Aldermore and only have £15k left so only 10% LTV, now we are looking to get a conservatory and complete refit out our bathroom.
Now our interest rate is fixed at 3.9% and looking around at loans and lowest i have been offered is 6.5% and for finance for the conservatory is 9%.

would i be better to just get an increase from my mortgage co? (this is a option at the same rate)

Thanks

steve

jonesMUFCforever

If you will owe more than£25k then I would go for a total remortgage - there are much better rates available out there for mortgages.

another_casualty

Aldermore: are they a specialist loan co. , that deals with people with poor credit ? ( Higher% rate etc.)
Could the refurb wait, till you clear the £15k and get an unsecured loan?

align700

No we only owe 15k and as the mortgage is not showing on my credit file and I don't use any other sort of credit everyone we go to can only give me a higher rate because we don't have any history and I refuse to use credit cards ect so unsecured loan is not an option unless I except a higher rate of interest

I don't want to remortgage as it will cost fees so would end up costing me what i would save staying where I am

[Deleted User]

Why the credit card phobia?

[Deleted User]

OP your best bet would be to take out some credit for a year or so, no harm in cc's as long as you pay them off in full each month, at least they will help build some credit history

align700

I used to work for a Debt help company and spoken to 100s of people that got a credit card only to help them out with their credit rating and getting in to trouble and some people ended their lives because of this. I am sorry i will not get a credit card just to get credit no way and to be honest NO ONE on this page should be advising or recommending this!!!

when we got the mortgage with Aldermore they liked the idea as i had no debt and no commitment to any credit payments and i was offered a mortgage in less than 2 weeks.

TBH i cant find any lender out there offering a loan less than 3.9% out there or im looking in the wrong place.

Peeky

align700 wrote: »

I used to work for a Debt help company and spoken to 100s of people that got a credit card only to help them out with their credit rating and getting in to trouble and some people ended their lives because of this. I am sorry i will not get a credit card just to get credit no way and to be honest NO ONE on this page should be advising or recommending this!!!

when we got the mortgage with Aldermore they liked the idea as i had no debt and no commitment to any credit payments and i was offered a mortgage in less than 2 weeks.

TBH i cant find any lender out there offering a loan less than 3.9% out there or im looking in the wrong place.

I got approved for my mortgage same day AND i have credit cards.

Thanks for the advice. I am now going to close all credit accounts down.

Peeky

Also just been on the aldermore website. They are taking the p1$$ with their rates. Everything is 3% higher than high street lenders.

[Deleted User]

align700 wrote: »

I am sorry i will not get a credit card just to get credit no way and to be honest NO ONE on this page should be advising or recommending this!!!

Then you need to be happy with paying higher interest rates.

I'm happy to continue my credit card usage and lower rates when I need them. And will continue to recommend it as the best way of building a credit history for those can manage one.

ViolaLass

align700 wrote: »

TBH i cant find any lender out there offering a loan less than 3.9% out there or im looking in the wrong place.

I know Nationwide is because I've been looking at them. You should be able to get half that rate or better.