Mortgage or unsecured loan ?

Dan-Dan

Hi 
we are looking to move home. We own our home outright and it’s estimated value is about £275k hopefully more but that’s the goal

we want to move sideways to something similar price. 

We have approx 11k savings, if we found somewhere over our budget say up to 300k what are our best options to finance that extra ?
we are in wales, not sure if that’s relevant but…

thanks for any advice 

housebuyer143

Dan-Dan said:

Hi 
we are looking to move home. We own our home outright and it’s estimated value is about £275k hopefully more but that’s the goal

we want to move sideways to something similar price. 

We have approx 11k savings, if we found somewhere over our budget say up to 300k what are our best options to finance that extra ?
we are in wales, not sure if that’s relevant but…

thanks for any advice 

Are you planning to sell the other one? 
How old are you? Are you working?

Dan-Dan

Sorry, yes, we’d need to sell to be able to move, we both work and we’re both 45

housebuyer143

Dan-Dan said:

Sorry, yes, we’d need to sell to be able to move, we both work and we’re both 45

Then in your case I would simply buy the new house at the same time you sell the old one and get a mortgage for any shortfall if there is any.
If not, you can simply buy the new one without a mortgage from the sale of your old one. 

Dan-Dan

Ok thanks, so if for example new house was £15k more than the proceeds from current house, I can mortgage that amount preferably over an unsecured loan?

housebuyer143

Dan-Dan said:

Ok thanks, so if for example new house was £15k more than the proceeds from current house, I can mortgage that amount preferably over an unsecured loan?

You could but I believe unsecured loans might not allow you to borrow to buy property. Its might also be cheaper to get a mortgage for 5 years than an unsecured loan. 
Worth looking into both options though. 

Dan-Dan

Thanks I appreciate it 

ACG

We do not do unsecured loans, but I dont think they can be used for a purchase - just things like home improvements etc. 
There might be the odd one, but I think you could spend a lot of time looking and no guarantees of success.

Dan-Dan

Thanks, my other concern is I’ve been in my new job one month, it’s permanent and full time and my wife has had the same PT job for years, it’ll probably take three months to get to mortgage stage anyway but am I best to try to use a broker in my case ?

housebuyer143

Dan-Dan said:

Thanks, my other concern is I’ve been in my new job one month, it’s permanent and full time and my wife has had the same PT job for years, it’ll probably take three months to get to mortgage stage anyway but am I best to try to use a broker in my case ?

Try a broker as not all lenders care now as long as you have been in continuous employment for a certain amount of time. So the one month might not be a problem as long as you have one payslip

dimbo61

Most mortgages are for more than £25,000 so if you only need say £15,000 consider getting an offset mortgage for £25,000/£30,000 and put any spare money into the offset account