*Loan,banking and credit>>>mortgage loan

Mortgage or loan?

I have a 拢40,000 mortgage for a property which I bought from the council. I have spent 拢10,000 on improvements but I need another 拢3,000 to finish. Should I put it on my mortgage or get a loan.

If it was me i would put it on my mortgage.

The reason being i would loan the money at the same low rate as my mortgage. i know that the term would also be the same as my mortgage but i would not have another bill coming out each month. I also presume that you have enough equity in your house to cover this i.e your house is worth more than 拢53,000.

My only advice with this would to go through an independant broker therefore they can search the whole market for you and get you the best possible deal.

Hope this helps x Source(s): Work at a mortgage brokers

Mortgage. It is cheaper.
Many mortgage providers will provide a "Home Owners Loan" It is loosely based on the mortgage but over a shorter term but with the lower interest rate of a mortgage. Check it out with your mortgage provider.

xxR
Depends on your tax laws and whether or not your government would allow the write-off. In the States, the interest of a debt secured by real property is deductible; an unsecured debt is not while the overall improvement (deductible off the "cost basis"). If neither rule applies, then your decision should be determined by APR as unsecured debts are significantly less in costs (i.e. points, title, escrow, appraisal... etc.).
You could remortgage if you're out of your redemtion penalty zone, especially as you have got a lot more equity in your house (if your house has gone up in price) you could then get a mortgage with a better rate and improve your house even further!
Hi

If you can remortgage without it costing too much then I would recommend getting a second mortgage for the 拢3000 and paying this off as quick as possible. Otherwise I would suggest getting a loan with a competitive rate from your bank or an online UNSECURED loan provider as there wont be too much difference in the repayments.

One other alternative is to use a credit card and transfer the balance to an interest free balance transfer card so you only pay the transfer fee and the rest is paid off interest free.

At the end of the day it will depend how much you can afford to repay each month and what feels most comfortable with you.

Good luck

Dean