Small mortgage

paulj2021

Hi all, 
I’m selling my current house to downsize but with the way house prices are accelerating, my hopes of living mortgage free on my next property are seeming less likely so I may need additional finance. It would only be a relatively small amount such as 25k over 10 years. My question is, is a mortgage the best way to raise this, or is some other form of finance a better option? It seems the fees and costs etc on a mortgage make it less economic when it comes to smaller mortgages, any suggestions appreciated!

paulj2021

Ps I currently don’t have a mortgage 

dimbo61

Most personnel loans are max £20/25,000 so you might have to look at a mortgage unless you can save the £25K you think you might need.
Could you take your pension at 55 ?
Consider an offset mortgage or one with low fees and free valuation, legals 

MovingForwards

Most personal loans exclude using it for purchasing property.

Would you consider borrowing more to get a better rate, then using your excess from sale as 10% payments each year.

getmore4less

Assuming under 60% LTV a 5y fix ~1.5%
Should be able to keep the total fees under £500
if you benchmark say £25k + £1k over 10 years.

amount	rate	payment	owing	interest
£26,000.00	1.50%	£233.46	£0.00	£2,014.95

and £500

amount	rate	payment	owing	interest
£25,500.00	1.50%	£228.97	£0.00	£1,976.20

and 5 years

amount	rate	payment	owing	interest
£26,000.00	1.50%	£450.06	£0.00	£1,003.43

amount	rate	payment	owing	interest
£25,500.00	1.50%	£441.40	£0.00	£984.13

breakeven rates of no cost borrowing for £25k over full term of 5 &10 against a mortgage of 1.5% + fee of £500 and £1k
5y and 10y  fee on 1.5%  
2.31% 2.05% £500
3.14% 2.61% .£1000
think a regular loan will be hard to find at those rate.

A lot more work and risky if you can't raise enough
if you can raise enough on credit cards 0% even with a few SBT  fees(~1%-2%py) you could undercut the mortgage but would need a few balance carry overs(risky) if the cash flow won't be there to pay off in full