Your advice Please?!

Mum_of_5_2

HI

I own my own house it's worth (because of ridiculous house prices) £400,000, i only have a mortgage of £55,000 on it. I don't work and my husband works. We have 5 children, 3 teenagers and 2 toddlers. I don't plan to work for about another 5 years or so.

We have got to a point when we desperately need to do some house maintence, new bathroom that sort of thing and i'm thinking about taking about £10,000 more out on the mortgage to do that. All our money is taken up in our day to day expenses, so we just can't afford the extra. I also feel that our mortgage is quite low so we can afford to add an extra £10,000. Yes i've worked out the repayments and they are fine.

So what i want to ask is, does anybody have any ideas whether this is a good way to do this, would be get a personal loan for this amount that would be more cost effective with payments low?? I feel not but am struggling to find out as my time is limited.

Also I fixed my current mortgage for 3 years at 5.5% with the Kent Reliance. Should i go back to them or look elsewhere for this?

Basically any suggestion would be great.

Thanks

Mum of five

poppy10_2

I'd get an advance on your mortgage. it's the cheapest way to borrow. The sums you are looking at are very reasonable.

Jonbvn

In the long run, you will pay less interest on a personal loan, compared to a secured loan. However, the monthly repayments on the secured loan will be much less (but many more of them!)

Overall, if you can stretch your income to cover the personal loan repayments, you would save money, which is the whole point of this website!

MortgageMamma

if you can afford to do it on an unsecured basis thats always best, even if it means putting it on a credit card and then doing lots of balance transfers on 0%

But if you really need the lowest monthly payment something called a further advance would be best. Dependent upon your income and existing credit commitments kent reliance should be able to do this for you - give them a call in the morning

Perspective

A further advance would normally be charged at the lenders SVR (maybe 7.75%) I would have a look at a personal loan as the cheapest long tem option, or even a low % credit card deal thats fixed for life, then work out what payments you would have to make to clear it off the deisred time frame.

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