What type of borrowing???

Lou15e

Hi,
I'm after some advice on what type of borrowing I should go for (wasn't sure if this is the right forum really) I own my own house and have never had a mortgage, I now want to borrow some money to do some improvements, probably around 30k but I'm unsure what type of borrowing would be best. I also only want a term of 5 years or less. Can I even get a mortgage for home improvements?? Or does it need to be a secured loan? Can anyone give me an idea please, I'm a bit clueless about all the different types of borrowing. Thank you

Ollie_D

Hi,

I can't pretend to be an expert, but I would suggest if you only want it over 5 years then a loan will be your best option.

Arrangement fees would be less (or non existent) paperwork would be less, and your home would be less at risk too.

Have a read here http://www.moneysavingexpert.com/loans/cheap-personal-loans

erin110

Or you could get a £30k mortgage where the interest rate is likely to be much lower than a personal loan of that size. You can also get fee free mortgages, what you are looking for would be an unencumbered remortgage (means you want to remortgage a house with no mortgage on it). You should also be able to repay it over 5 years. I would recommend speaking to a broker or even your own banks mortgage advisor. If a mortgage is what you want to do, it would be a mortgage rather than a secured loan. There will be a lot of paperwork involved and not as quick as a loan so you may want to think about how quickly you want the money.

dimbo61

Many lender have a minimum term of 5 years and a minimum loan of £25/30,000 so you just about qualify.
However Martin has reported on this website about a loan at 2.8% from Sainsburys bank on loans upto £20,000
Can you get most of the work done for £20,000 and maybe a credit card or two if needed

robsmg

Hi,
I am a mortgage advisor, I worked for a major high street bank (NatWest) we had a minimum term of 3 years for a mortgage and minimum lending requirement of £25k.

You would have to go through a formal application, this should be with no upfront fees, you are essentially doing a remortgage, the lender should cover the valuation and legal fees for you. May be worth having a chat with your bank and asking them.

Unsecured is also a route to consider but will probably be at a higher rate than you can get on a mortgage.