What's the best way to raise £25,000 for home improvements?

Posted on 29 September 2012 by Mel


I bought my house outright 8 years ago but now i want to do some home improvements & need to raise about 25000, which is the best way to go about it?

Mel

The cheapest way to borrow the money would be to take a residential mortgage.  The rates on these are lower than secured personal loans and many lenders offer a free valuation and free legal service to keep your costs down even further.  Whether you qualify will depend on the property being suitable security and your income covering the anticipated monthly repayments.  Mortgages can be taken over anything between 3 and 25 years.  Whilst it may be tempting to take the mortgage over a longer term to keep the monthly payments down, you should remember that this will be more expensive in the long run that a shorter term.  I would recommend that you take as shorter term as possible whilst keeping the repayments affordable.  You may also find that some lenders have a minimum loan of £25,005, but I don't think this will present to much of an issue for you.

I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers.  Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to help you find the right mortgage for your situation.

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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