Loans...Whats out there?

[AdvocatusDiaboli]

I might need to stump up an extra 20k (not to buy a car sadly, but a house!). Can't do it via a mortgage, so a loan is the only other option.

Does anyone know what the lowest possible interest rates might be?

Are there any other ways of borrowing 20k without paying through the nose?

Open to all suggestions including nice PH'ers giving me free money!

Interested to hear the advice!



>> Edited by AdvocatusDiaboli on Thursday 15th December 15:32

[JamieBeeston]

www.fool.co.uk/

5.8% from Cahoot seems to be the lowest.

Enjoy.

[_topcat]

have just recieved a phone call from the accountant at the dealer i am buying my new car from. i paid cash but he just offered me 2% finance for 12 months. not bad at all...
not doing it though. too much hassle for £500 saving.

[trooperiziz]

Are you getting the loan because your mortgage offer was too low and you need to bump up your deposit? If so, you'll probably find your mortgage offer will decrease in proportion to whatever unsecured loan you get, assuming you tell your lender all your debts.

I recently got a QuickLoan from LloydsTSB (my account is with them) All it took was a couple of clicks online and the money was instantly in my account, which was nice. I think the rate was about 6.0%.

[Paracetamol]

You may find yourself in a catch22

-You may not be able to get such a large personal loan if you dont own a house...
-If you do get the loan then the mortgage company may take this into account and lower the amount it is willing to lend to you...

[mcflurry]

www.moneysupermarket.com is your friend in these matters

[AdvocatusDiaboli]

Thanks all. That's good advice. I was unaware that a loan would lower the amount of my mortgage. I have an offer in principle which is a good stretch and within my affordability.

However, i was thinking of taking the loan out once the mortgage on the property is approved - but it hadn't struck me that that might be seen as dishonest. Is it?

[trooperiziz]

AdvocatusDiaboli said:

Thanks all. That's good advice. I was unaware that a loan would lower the amount of my mortgage. I have an offer in principle which is a good stretch and within my affordability. However, i was thinking of taking the loan out once the mortgage on the property is approved - but it hadn't struck me that that might be seen as dishonest. Is it?

There will be a section in your mortgage application that will ask you to declare how you will be financing your deposit.

[AdvocatusDiaboli]

What if I take the loan out after I take the final mortgage out? Or does that not really happen?

[cirks]

AdvocatusDiaboli said:

What if I take the loan out after I take the final mortgage out? Or does that not really happen?

In theory you would be asked all your current outgoings when trying to get the loan. If the mortgage company weren't willing to extend a greater loan then I can't see why a loan company would lend you money (especially if you can't secure it)