We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Mortgage or loan??
kirstyshepherd
Posts: 3 Newbie
Can anyone advise please.
I'm am buying a property which requires approximately a 50% mortgage over 25yrs but we need a further £9k to pay fees and for some minor home inprovements. I am unsure whether I should add the cost of the loan to the morgage or get a separate loan for the 9K over 10 years. Both options give monthly payments which we can affford but we can't decide which is the best option long term.
Please help
I'm am buying a property which requires approximately a 50% mortgage over 25yrs but we need a further £9k to pay fees and for some minor home inprovements. I am unsure whether I should add the cost of the loan to the morgage or get a separate loan for the 9K over 10 years. Both options give monthly payments which we can affford but we can't decide which is the best option long term.
Please help
0
Comments
-
Could you borrow all on mortgage and reduce the term down to meet the amount of what the payment would be on mortgage + loan together?
ie. Mortgage over 25yrs = £600 + Loan over 10years = £150 = total payment = £750
Mortgage + consolidation in one = £650 on 25 year term but for £750 you can reduce this to say 20 years? That is 5yrs saving of interest which may be better?I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
A mortgage that allows over payments might be suitable. I've never come accross anyone wanting a separate loan at outset, it's unnecesarily complex on all sorts of levels.0
-
Good idea! Thanks for that.
Kirsty:j0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.9K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 246.9K Work, Benefits & Business
- 603.5K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards