loans and mortgages- help?

[mully]

can anyone advise me about loans and mortgages?

Me and my partner are buying a really run down house, which needs a lot of work to be done on it, we have just managed to scrape the money together leaving us with no savings at all, when we do move into the house we have to get it rewired which is a must as it has never been touched, but with no money to do it I said that I would  get a loan or a small mortgage which we dont really want to do as we do not want to get into a lot of debt.

I am just on an average wage (retail) -and i was looking to borrow about �10.000.

Which would be the best option  to go for a mortgage or a loan? and which is the best type to go with as there is all different repayments which I do not quite understand -can anyone help me ?thankyou .

[Didwot]

Congratulations on saving enough to pay for the house without a mortgage. If you do need to borrow some money for improvments the best way will be to raise a small mortgage at the time of the purchase. There are some really good deals available at the moment, and if it is done at the same time as the purchase you will avoid extra legal and other fees. Morgages are loans secured against the property, and because the loan is secured the interest rates are (nearly) always lower than a comparable unsecured loan.

[Didwot]

As to the type of mortgage I would have tholught a repayment mortage will fit the bill. If yoiu take the mortgage over 20 years the repayments inclusive of interest will only be about �60 per month. Most lenders will let you overpay the monthly amount so you can always pay it off more quickly if you want

[vxx]

Having learn the hard way i would go for a personal loan over 5 years if you can depending on rate etc you should pay about �250 per month where as if you take it as a mortage over 20 years or so then the intrest will add up more. Also this way there teh debt is not secured on your home.

[ukmoneyguy]

Hmmm, from information supplied difficult to answer precisely, however, if you have a clean credit rating and can afford to repay the �10,000 over 5 years or less, then a cheap personal loan is more than likely the best option.(rates are currently around 6% or less).

However, if your credit is less than perfect, or, if the repayments on a 5 year loan for �10,000 are not affordable then a first mortgage spread over a longer term would probably be best but I would seek help of an experienced financial advisor prior to making any commitment either way, there are some articles about <a target='_blank' href="http://www.fm-money.co.uk">money and finance here </a> that may help you