Best way to borrow

[DJ111S]

Due to family needs I need to raise a fairly decent chunk of cash. Am I best to add it onto my existing mortgage or take out a separate loan? Is it as simple as just finding the lowest interest rate?

[grass widow]

Depends if you want to repay it back over 20 years or more, or you can afford to pay it back quicker over say 5 to 10 years.

Shop around for the best interest rates, there are some good deals out there, do you want a fixed rate loan or a variable one?

[DJ111S]

Sorry, I should add. I'd be aiming to pay the sum off in under two years and would prefer a fixed rate (my mortgage is fixed also).

[Plotloss]

Get a loan, any old loan and then get a 0% super balance transfer credit card.

These allow you to transfer any debt onto them, hey presto you then have a credit card debt, which is portable at zero percent.

[m1spw]

If its just 2 years, then just look for the lowest interest rate. Another alternative could possibly be go for a credit card with 0% finance for 18 month or so (I think Barclaycard do this?). Maybe the sum it too high for this, but simply swapping it over a couple of credit cards over 2 years with 0% finance could save you a lot!

>>Dammit, just beaten to it. If only photoshop hadn't taken so long saving...

>> Edited by m1spw on Tuesday 11th October 19:21

[sleep envy]

Plotloss said:

Get a loan, any old loan and then get a 0% super balance transfer credit card. These allow you to transfer any debt onto them, hey presto you then have a credit card debt, which is portable at zero percent.

credit whoring is great, free loans for 6 months and then jump ship onto the next one.

[DJ111S]

Thanks, I'll investigate the credit card route.

If I put it on the mortgage and then overpay it to pay the "loan" off in two years am I effectively no worse off than taking a separate loan?

[m1spw]

DJ111S said:

If I put it on the mortgage and then overpay it to pay the "loan" off in two years am I effectively no worse off than taking a separate loan?

Not really, everything depends on the interest rates you can get. The lower the better, so it might not make any difference at all whether you take a loan out or put it on your mortgage.

[apache]

Plotloss said:

Get a loan, any old loan and then get a 0% super balance transfer credit card. These allow you to transfer any debt onto them, hey presto you then have a credit card debt, which is portable at zero percent.

care to give me an example you dole scrounger you

[sleep envy]

You'll need to check with your lender as they sometimes set a limit to the amount you can over pay and also there's usually a penalty to pay for early debt payment.

[DJ111S]

I have no overpayment limits of penalties! Interest rate is 5.9%

[Plotloss]

apache said:

Plotloss said: Get a loan, any old loan and then get a 0% super balance transfer credit card. These allow you to transfer any debt onto them, hey presto you then have a credit card debt, which is portable at zero percent. care to give me an example you dole scrounger you

Loads about it here:

www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1085355871,12390,

Which I appreciate makes me look a bit pikey...

[boiler]

DJ111S said:

I have no overpayment limits of penalties! Interest rate is 5.9%

You should be able to find a cheaper interest rate for a mortgage, depending on your situation.

Remember, if the loan is secured against your house then your house is at risk...