Loan or re-mortgage?

Powapa

Hi everyone,

After some help please, I’m looking for a £15K loan for home renovations and I’m able to get a loan at 2.8% over 4 years. My mortgage rate currently is 1.6% fixed, would this mean it’s cheaper to borrow more on the house? Might seem like a really stupid question but whenever I ask someone I get a different answer.

[Deleted User]

liammjenkinss said:

Hi everyone,

After some help please, I’m looking for a £15K loan for home renovations and I’m able to get a loan at 2.8% over 4 years. My mortgage rate currently is 1.6% fixed, would this mean it’s cheaper to borrow more on the house? Might seem like a really stupid question but whenever I ask someone I get a different answer.

It’s not just the rate you need to consider it’s the term as well plus any fees. 2.8% over 4 years is going to be less expensive than 1.6% over say 20 years.  Other things to consider are, will your mortgage lender advance you another £15k and if yes what fees would be involved.