Personal loan for £35k best to split it ?

UK_Lee

hello , we're looking to get a large extention & new kitchen . We have savings but will need to find an extra £35k and are looking to pay it back over 5 years. We are both working with our mortgage paid off a couple of years ago. We have reasonaly low outgoings ,no other finance, good credit scores and can afford the proposed repayments. 
Nearly all of the cheap personal loans are only up to £25k - with the best deals at around 2.8% APR - beyond 25k the rate shoots up to around  6.7% .
I'm thinking that I would apply for a £25k loan @ 2.8% (£446.61 per month) and the wife applies for a £10k loan ( £178.64 per month) giving us a total monthly repayment of £625.25 , this compares favourably with a £35k loan @ 6.7% with a monthly repayment of £684.86 - or am i missing a trick ? 
Would the fact that both the wife and I (living at the same address) applying for a personal loan at the same time cause any problems with eligibility or acceptance ? 
Is there a better way ? 
thanks for any advice 

Lee

[Deleted User]

If you're fininacially associated, then you'll likely both be assessed for each loan.

Look at breaking up the work and repay as you go.

MattMattMattUK

UK_Lee said:

hello , we're looking to get a large extention & new kitchen . We have savings but will need to find an extra £35k and are looking to pay it back over 5 years. We are both working with our mortgage paid off a couple of years ago. We have reasonaly low outgoings ,no other finance, good credit scores and can afford the proposed repayments. 
Nearly all of the cheap personal loans are only up to £25k - with the best deals at around 2.8% APR - beyond 25k the rate shoots up to around  6.7% .
I'm thinking that I would apply for a £25k loan @ 2.8% (£446.61 per month) and the wife applies for a £10k loan ( £178.64 per month) giving us a total monthly repayment of £625.25 , this compares favourably with a £35k loan @ 6.7% with a monthly repayment of £684.86 - or am i missing a trick ? 
Would the fact that both the wife and I (living at the same address) applying for a personal loan at the same time cause any problems with eligibility or acceptance ? 
Is there a better way ? 
thanks for any advice 

Lee

Yep, speak to a broker, get a mortgage, you will get an interest rate in the low 1.X% range.

UK_Lee

Thanks Matt - i hadnt considered a re-mortgage . I'll take a deeper look into it but from a quick scan we should be able to save a decent amount of money that way ! . Thanks again. Lee

[Deleted User]

There will be cost associated with a re-mortgage, also ignore your "credit score" no one has one and only you ever see it.

maxximus75

It isn't really a re-mortgage as you don't have a current mortgage.

So really, you are just going for a standard mortgage.

There are a lot of providers out there that pay the fee's associated.

Either way, it will probably be the lowest form of borrowing - you will just need to find one that will do a 5 year mortgage.