Wednesday, November 23, 2011

Is it better to borrow on my mortgage or secured loan?

I want to borrow some to money to consolidate all my credit and thought the only way out is to put it on my mortgage. Problem is i am tied into my mortgage til September and so will have a charge of 拢3000.00 to pull out. Also i will have to have a survey done and pay solicitor fees. Someone has suggested getting a secured loan which is basically the same as a mortgage but you will get the money quicker and wont incurr any charrges. Which is the best option to go for?Is it better to borrow on my mortgage or secured loan?
None of the above. Think very carefully before turning unsecured debt (Credit Cards etc.) into the secured kind, such as a mortgage. No-one can chuck you out of your house for an unpaid unsecured loan. I don't have any figures for you, but you should consider an unsecured loan. The now Government-backed Northern rock would charge you 拢88.96 without insurance per month for every Thousand Pounds borrowed over a period of twelve months. Go onto their website and play around with the term of the loan, which will change the level of your payments. As there is no Redemption Penalty for early settlement, this could bridge the time until your options re-open in September. If you choose not to do anything then, at least you have reduced the interest rate of your borrowings and know when you will clear that debt.





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The answers above are for guidance only and should not be acted upon without you receiving independent financial advice relevant to your circumstances. To find and IFA please call 0800 085 3250 or go to http://www.unbiased.co.uk.Is it better to borrow on my mortgage or secured loan?
Take the personal loan
most banks will give you a further advance on your mortgage at a better rate than secured loan.
A secured or unsecured loan will be far quicker but the mortgage increase will be cheaper in terms of monthly instalments - however over the period of the mortgage it will turn out much more expensive.





I would strongly suggest an online loan such as virgin / cahoot etc........
a secured loan will be cheaper in the long run as you will pay it off over a shorter period however the repayments will be cheaper monthly to have it on your mortgage, think carefully and speak to the bank would be a good idea
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