Personal Loan or Another Mortgage

TheDirector

We may be porting our mortgage but would need some extra borrowing for the house we will be buying etc. About 14k. Any thoughts on whether to get personal loan or a second mortgage?

Thanks.

[Deleted User]

A personal loan is unlikely to be given for property.

The rest depends on your payback period and rate comparisons.

TheDirector

It would not actually be needed for the purchase itself, but paying off some overdraft debt and paying for some of the associated costs e.g. solicitors, stamp duty. If we were going down the route of getting a personal loan we would do it well in advance of the purchase completion.

[Deleted User]

Depending on your credit history you should get a good rate on 14k for a personal loan over 5 or 7 years, better that perhaps than over 20 years?

jonesMUFCforever

venison wrote: »

Depending on your credit history you should get a good rate on 14k for a personal loan over 5 or 7 years, better that perhaps than over 20 years?

1. You won't get a personal loan to buy property.
2. You do not need to take the additional mortgage for the full term - if it is affordable there is nothing stopping you taking a mortgage over 5 or 7 years.

foxy-stoat

TheDirector wrote: »

It would not actually be needed for the purchase itself, but paying off some overdraft debt and paying for some of the associated costs e.g. solicitors, stamp duty. If we were going down the route of getting a personal loan we would do it well in advance of the purchase completion.

Of course you can take on more credit if you want to, but your lender will need to know about your increased personal debt and pass their affordability checks, even when you are porting.