# Loan Or Re-mortgage



## bradfordfabia (Jun 14, 2008)

I am moving in with my fiancée in March and we was thinking of moving house but with her mortgage being low we have decided to renovate her house. It's a back to back terrace and it needs loads of work doing on it ie central heating needs fitting and rewiring are the major jobs. We are thinking £20,000 should do the job but can't decide if to re-mortgage or get a loan,what is the best option?.


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## alx_chung (Aug 13, 2006)

bradfordfabia said:


> I am moving in with my fiancée in March and we was thinking of moving house but with her mortgage being low we have decided to renovate her house. It's a back to back terrace and it needs loads of work doing on it ie central heating needs fitting and rewiring are the major jobs. We are thinking £20,000 should do the job but can't decide if to re-mortgage or get a loan,what is the best option?.


It a good question and one that I have at the moment as well. For the bank it depends on how much equity that your Fiancee has on her current property. The higher the equity the more likely that they are going to let you borrow more.
Our property needs new windows, replastering, retiling of the kitchen and general redecorating. But the Windows are the big spend that we need to do.
Alex


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## bradfordfabia (Jun 14, 2008)

We are also going to move the kitchen into the basement because the currant one is a galley so it's tiny.


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## ardandy (Aug 18, 2006)

Save up?

Some places do 0% on stuff like kitchens.


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## bradfordfabia (Jun 14, 2008)

Going to do it all next year so will save a bit up. We are getting married this year so our savings will be going towards that.


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## -tom- (Jan 27, 2009)

my my job working in a bank when we have peopel in looking at large loans 15k + we all ways look if they could do it on there property main reason morg rates around 4% loan rates you could be looking at 7% upwards so does make it cheeper over all.


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## SteveyG (Apr 1, 2007)

-tom- said:


> my my job working in a bank when we have peopel in looking at large loans 15k + we all ways look if they could do it on there property main reason morg rates around 4% loan rates you could be looking at 7% upwards so does make it cheeper over all.


But the term is likely to be longer on the mortgage, so works out considerably more expensive than a personal loan.


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## Darlofan (Nov 24, 2010)

-tom- said:


> my my job working in a bank when we have peopel in looking at large loans 15k + we all ways look if they could do it on there property main reason morg rates around 4% loan rates you could be looking at 7% upwards so does make it cheeper over all.


Not on commission there are you? That sounds like an answer from someone in my bank trying to get me to take out a more expensive product by making it sound cheaper.
As SteveyG says depends what the term is. A 7%loan over a few years is going to be a lot cheaper than a 4%mortgage over the next 10-20years.


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## -tom- (Jan 27, 2009)

SteveyG said:


> But the term is likely to be longer on the mortgage, so works out considerably more expensive than a personal loan.





Darlofan said:


> Not on commission there are you? That sounds like an answer from someone in my bank trying to get me to take out a more expensive product by making it sound cheaper.
> As SteveyG says depends what the term is. A 7%loan over a few years is going to be a lot cheaper than a 4%mortgage over the next 10-20years.


we look at starting point off 3 years on a mortgage up wards we leave it with the customer. its what you can afford each month. With a mortgage as well u can over pay which some banks you cant with some other loans.

regards commission i am no no commission what so ever get paid a basic salary each month.


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## shine247 (Mar 1, 2010)

The mortgage is an option if the rate is good. You do not have to select the same term as the original mortgage (or should not have to). There are those that do not like to borrow back on their home out of principle. There are some good loan rates about just now, just over 6% so the difference may not be that much plus you may have to pay a valuation fee for the equity release route.
A lot of unsecured loans allow overpayment now as well. A personal loan is likely to be a fixed rate, the mortgage may be variable.
Depending on income a large unsecured loan may not be an option, it would be unlikley one could borrow £25k on a salary of £30k for example. Also, other unsecured borrowing would be taken into account. Just some things to consider in the decision process.


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