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unavoidable loan
cannot_decide
Posts: 1 Newbie
in Loans
Hi I hope I am posting in the right forum.
We have an unavoidable expense of around 26k- 30k coming up next couple of yrs but don’t need all of it at once. My questions are..
1. Shall we remortgage i.e borrow more (has £80k equity),but early repayment charge of 6k applies until 2021.
2. OR get a personal loan?
3.If we get a loan, are we better off getting 2 separate loans (for e.g: 15k for 5yrs & then get 15k again in 1 years time?) OR get 30k in one go?
cheers all 👍🏼 in advance for your input
We have an unavoidable expense of around 26k- 30k coming up next couple of yrs but don’t need all of it at once. My questions are..
1. Shall we remortgage i.e borrow more (has £80k equity),but early repayment charge of 6k applies until 2021.
2. OR get a personal loan?
3.If we get a loan, are we better off getting 2 separate loans (for e.g: 15k for 5yrs & then get 15k again in 1 years time?) OR get 30k in one go?
cheers all 👍🏼 in advance for your input
0
Comments
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Depends on your circumstances (income and existing debts and employment situation) and what the loan is for.
I would not borrow more than you need so I would say two separate loans. I certainly would not pay a £6k ERC. Is it really unavoidable? That is a lot to find. Is it for home improvements? That is the only circumstance in which I would add it to the mortgage.
You won't get a personal loan for £30k. Most banks only go up to £25k.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0 -
Perhaps none of those.
Figure out what you need the money for and when, and consider 0% options, such as cards and other finance.
Much will depend on your affordability.0 -
Save for two years and be in a position to need to borrow less?0
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What is this unavoidable expense?0
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What is the expense that is s occurring in a couple of years that you need 30k for.Mortgage free wannabe
Actual mortgage stating amount £75,150
Overpayment paused to pay off cc
Starting balance £66,565.45
Current balance £58,108
Cc around 8k.0 -
If someone lent your £30,000 to be repaid over 5 years with 0% interest the monthly payment would be £500. 3% interest is around £540 and 9% is £610.
So it would be sensible for you to save £550 a month NOW and in a years time you would have £6600 and so on.
Save more and borrow less.
Depending on the purpose of the loan I would think carefully about pulling money out of your home.0
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