What's the best way to borrow £31,000?

stringbeanjean

Hello, I'm really hoping for some good but simple advice as I am very new here.

Basically, in 2004 my mum released some equity on her mortgage-free house.
She borrowed £24,000. She was unaware of the consequences of the compound interest. It's something I'm personally unfamilliar with - I'm just quoting her.
Now 3 and a half years later, she owes another £7,000.

We realise that in another decade or so, her house might be worth next to nothing. So we have decided the best thing to do is to pay off the £31,000 debt.

As there is only me and my mum left of the family and she wants to leave the house to me when she dies(especially because I am in my late 30's and don't own my own property), if seems obvious to me that I should help as much as I can to pay off this debt with her.

The problem is that neither of us know much (I know nothing!) about loans or mortgages. I myself have no debt at all (apart from a student loan), I rent my house and have only just become self employed last month.

My partner has also said that he will help as much as he can - so we could go 3 ways to pay off the debt - but he is quite a low earner himself so he couldn't contribute too much.

So, having read everything I could on this site - I must admit to being somewhat baffled. Do we need a mortgage? A loan - unsecured - secured?

We would like to pay back the money as soon as possible to avoid more interest and could afford to pay up to approx £400 a month between us.
I would also like the opportunity to pay off larger sums when I can - if possible.

I've never really borrowed anything before so forgive any naivety.

I would be very grateful for any advice, we are confused and worried.

Thanks
x