NightOwl668
Registered User
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We're buying a property which requires some renovation work. We secured a small mortgage (70k) to buy the property. My partner has recently been gifted a sum of money(10k) by the parents and we are now considering whether to:
(a) reduced our mortgage requirement to 60k ,and borrow 10k short term* to 'fix up' the house - an additional 10k on our deposit will not improve our LTV interest rate applicable 4.29% variable (60%-80%) , term 15 years
or
(b) draw down the mortgage at 70k as originally planned and use the additional 10k for the renovations job.
*The bank is quoting a 10k personal/home improvement loan @11.5% over 60 months
We're not great on the maths so would be glad of any advice from posters here. Our instinct tells us to keep the mortgage borrowing as low as possible and finance the refurb by way of short term borrowing as proposed above , but we would welcome other views.
Many thanks!
(a) reduced our mortgage requirement to 60k ,and borrow 10k short term* to 'fix up' the house - an additional 10k on our deposit will not improve our LTV interest rate applicable 4.29% variable (60%-80%) , term 15 years
or
(b) draw down the mortgage at 70k as originally planned and use the additional 10k for the renovations job.
*The bank is quoting a 10k personal/home improvement loan @11.5% over 60 months
We're not great on the maths so would be glad of any advice from posters here. Our instinct tells us to keep the mortgage borrowing as low as possible and finance the refurb by way of short term borrowing as proposed above , but we would welcome other views.
Many thanks!