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Remortgage vs loan
FluffyFiFi
Posts: 585 Forumite
Just wondering if there is any reason I have to have a mortgage on our house or whether I could take out a loan to pay off the building society. I resent having to pay a reservation fee and it would seem that the rates are all over the place at the moment. If a loan is the cheaper option is there a reason I could not do this?
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Comments
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There's nothing to stop you doing that, but cost is usually the main factor.
Mortgage rates are generally cheaper than unsecured loan rates, plus the maximum term most companies will do an unsecured loan for is 5 or 7 years.0 -
Thanks Tiddler, I've got a quote at 6.4% for 18 years, but you are right that this is a bit higher than the mortgage rates but for ease and convenience it seems a good idea.0
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18 years?? That's very unusual for an unsecured loan - do you mind if I ask who that is with?0
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It's with FirstPlus, but I got the rate wrong, it's 6.6%. I went through MoneySupermarket.Com and they came out as the best.0
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Are you sure that's not a secured loan?0
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It is a secured loan.0
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Not sure why you view this as being less hassle than remortgaging, especially as you could get a much better rate on a mortgage though.0
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A secured loan IS a mortgage they used to be called 2nd mortgages0
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