Mortgage Advice Needed

nick28_2

Hi

I am wanting to borrow a small amount for home improvement (£20k).

I own my house outright due to inheritance (valued at £280K).

I am on a low income (£19k) and my wife looks after the kids. We can afford to do this due to no mortgage / rent.

Becuase of this though, I want the loan over a longer period (15-20 years) as I can only afford £150 a month re payments, due to the one (low) salary. I am aware this will result in paying back more, but I cant afford more than that per month.

What are the best options available to me? I dont really want to pay a huge arrangement fee, and also want the flexibility to pay some or all off, should the opportunity arise within the 15-20 years.

Any advice would be greatly appreciated

homer_j_3

20k may be a little too small for some lenders so you may want to look at finding a flexible mortgage product (one with unlimited overpayment facilities or no tie ins for example) and one with little or no set up costs.

You can then look to borrow the minimum amount of that lender and immediately repay back the difference that you do not need. You should then secure the better deals this way as you will have more lenders available. A lot of lenders will have a min of 25k-50k borrowing.

You need to understand whether or not you want a fixed rate or a variable rate type product. This should be pretty straight forward for you to do.

Other than this you may be able to get a homeowner loan but these will invariably be more expensive and attract higher rates and be with less scrupulous lenders.

I would also ask whether or not you can maybe do the jobs in stages to try and avoid the need of borrowing money at all?

nick28_2

Thanks!

Do you have any idea who may be able to offer such a deal or how I could find out?

homer_j_3

you could always ask a local whole of market broker or one that works over the internet/via post/ telephone etc.