Increasing our mortgage or loan

align700

ViolaLass wrote: »

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

Nationwide loans start at 3.4% so not a massive saving only 0.5% difference

align700

Deleted_User wrote: »

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.

can you advise what lenders are doing loans lower than 3% please?

align700

Peeky wrote: »

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.

Thats your own choice

align700

when we starting looking for a mortgage halifax and nationwide turned us down because i did not have a history even though i was earning good money and my out goings was low so i could easly afford my payments and had a 55k deposit they still relied on a system of numbers to canculate my chances and turned us down.

when i spoke to aldermore yeah their rates was not the best but at the time aldermore was only 0.9% higher than the highstreet lenders, and they took the time to look at our situation instead of relying on numbers and gave us a mortgage that we was happy with and could very well afford.

sorry if i come across rude but my words dont show my tone, i just do not like credit cards and have seen how they can distroy people very quickly and do not want to go down that route.

I have spoken to Aldermore who have said if i had extra on my mortgage it will be at the rate its set at now untill its up for renewal next year and could switched to a better rate or move the mortgage to another co.

But as its (now) lower than 15k its not worth moving

ViolaLass

align700 wrote: »

Nationwide loans start at 3.4% so not a massive saving only 0.5% difference

I was talking about mortgages. We're about to move to 1.59%.

enthusiasticsaver

align700 wrote: »

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

Personally I am not a fan of credit cards either but they can be used as a cheap way of borrowing in much the same way as interest free HP. You just have to be disciplined and say that credit card was only taken out to do the conservatory and do a direct debit for the payment over the interest free period so it is closed by then. A remortgage may be an option and some deals do not charge fees and in fact do cashback but it is a hassle and it would be quicker and easier to stick with Aldermore. 3.9% is not a bad rate for borrowing.

My preferred option though for doing refurbishments at home is to use savings. How long would it take you to save for the home improvements?

enthusiasticsaver

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 was a debt counsellor and yes saw many people who suffered a load of misery by using credit cards for everday expenses. There are a lot on this forum. They have to be used in a sensible manner - ie I use a credit card for all my monthly expenses, gain cashback on it and then pay it off in full by direct debit every month. Nowadays we save for large purchases (car, home improvements, holidays) but if we struggled with that or needed something urgently I would use an interest free card and pay it off over the interest free period as some are quite long these days (3-4 years).

However when money was tight I did not use them simply because paying the bill meant money was tight for the following month and budgeting was harder. Never paid a penny in interest though. If someone is disciplined with money which I imagine you must be then they can be used to your advantage without you getting into difficulties. Your choice though.