Loan or not to loan???

babuseat

Helloooo to all,

My very first posting so plz be kind ........I know u will!

Well my predicament is we were going to move house but decided against it,so we thought we will put a conservatory on the back. We need £10,000 for the whole lot, So my dilema is;

1)Get a mortgage for £10,000(RBS 6.85% F.Rate 2 years) Over 25 years at £69.00

2)Get a loan over 7 years 6.5% £155.00.

We want to start a family next year so will be on terrible Mat pay, so want to make our lives as easy as poss.
Other half has some shares matyring in 2009 so was going to use that to pay off bulk of it .... if it makes anything.
Jut wonderin if anyone has been in the same pickle,what did you do? or can you suggest anything?
THANK YOU

jonesMUFCforever

I would go for the plan 1 - with the proviso that you should start saving now to take some of the slack from when you will be on maternity.
Just think how much you could save if you put aside the difference between £69 mortgage payment and the loan of £155!