borrow £30,000

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kammx4
kammx4 Posts: 43 Forumite
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Hi i have looking to raise £30,000 for home improvements next year and wondered on the most cost effective way to do this. Borrow a separate loan for the amount or remortgage for the extra. I have no debt at the moment except my mortgage which has 8 years to run and has £68,000 on it. Thanks for any advice.

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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    Whichever will cost you less.

    That will involve you comparing not just the rates you could get, but also the timescales, any early redemption fees, etc.
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
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    It will also depend on how much you can afford to repay each month.
  • dawyldthing
    dawyldthing Posts: 3,438 Forumite
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    Might be worth slowly saving for it unless it's urgent. Any borrowing costs a lot more than what you started with
    :T:T :beer: :beer::beer::beer: to the lil one :) :beer::beer::beer:
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,594 Ambassador
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    The cost depends on fees interest rates and term.


    As a first preference I would break down that £30k into critical and nice to do some day and use a combination of long term 0% credit cards and savings. That is cheapest way but it depends on how much spare income you have to repay it.
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  • Suplex_Backbreaker
    Suplex_Backbreaker Posts: 110 Forumite
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    kammx4 wrote: »
    Hi i have looking to raise £30,000 for home improvements next year and wondered on the most cost effective way to do this. Borrow a separate loan for the amount or remortgage for the extra. I have no debt at the moment except my mortgage which has 8 years to run and has £68,000 on it. Thanks for any advice.

    Remortgaging for the extra would probably be the cheapest way as it's currently incredibly cheap to get secured loans and you surely have quite a bit of equity in your house by now anyway, so you'll probably be able to access the best rates even with the additional borrowing (ie. 60% LTV).

    You might want to lock in a 5 year fix for peace of mind, even if the interest rates wouldn't be as low as say a 2 year deal.
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