Advice needed re mortgage. I'm clueless!

nick28_2

Hi everyone!

Me and my wife own our house outright (due to an inheritance). We are wanting to borrow approximately £20k (our house was recently valued at £280K), to do some house improvements, but would like a mortgage rather than a loan as the repayments would be too high.

We dont really know much about mortgages, but am I right in assuming we are people who the banks would see as low risk (i.e low amount borrowed, and we own our house outright?) Could anyone offer any advice as how to proceed? Any advice would be grately appreciated.

Thanks in advance

Nick

mitchaa

Im surprised you would not be able to afford a £20k personal loan when you have no mortgage to pay for? You live mortgage/rent free

£20k loan over 5 yrs would only be around £400pm

As to your question, im not sure if you can get a new mortgage for under £25k, im sure there is a limit.

Someone will come along in a minute and give you a better answer

happybroker

Mortgages are available at this level and over 5 years if that's what you are looking for but watch out for fees.

You will get a lower rate by paying a fee but is it worth it on such a small loan (comparatively). Don't dismiss the personal loan, the Abbey's standard variable mortgage rate is 7.09%, some banks can beat that on a personal loan and some will let you go over 7 years.

The other bonus with the personal loan is that it isn't secured to your home, if you were to fall on hard times in the future you would at least keep the house.

Good Luck