Mortgage v's personal loan

[CaptainJ]

I'm coming to the end of a two year fixed rate from 2.8% in Feb. It's my first mortgage and as a single pringle I'm feeling the squeeze (probably like lots of folk here). My broker and Better (formerly Trussel) have given me their best quotes which is at least 6% interest and up for a two year fixed term again.

I've got 80k left to pay over 13 years (currently paying £700 per month), and by the time Feb comes around Ill have taken it down to 75k.

I've a well salaried job of around 50k pre tax and thought - if I could get a lower personal loan below current mortgage products interest (below 6%) across a similar term of 13 years would it be worthwhile doing as I plan to sell in two years anyway (good location - near hospital... feel like it would sell...)

I hate the admin of trying to sort out mortgages and wondered if anyone had ever done opted for a personal loan in place of a mortgage. The only risk I see is the property not selling within the two years, mortgage rates reducing below the loan interest. If that were to happen though I'd probably switch to a different loan to keep chasing a lower interest... (taking into consideration the cancellation fees etc).

Glad for perspectives 🙌🏼🙌🏼
Thank you

Personal loans aren’t eligible to be used for property purchases. Most banks put that in their t&c’s. The reason being - there are protections afforded via mortgages that aren’t available on loans.

That's handy to know! Thank you for your reply Justaminutepleass

so you are wanting to take out a personal loan to repay the bank / reduce the amount borrowed from the bank ?

a “mortgage” is actually a security instrument over real property so your “mortgage” is simply a personal loan secured by a security interest over your house.

you would be unlikely to get a large enough unsecured personal loan for the whole of your existing unpaid debt which is currently secured by a mortgage. “Mortgage” interest rates tend to be lower than personal loans because they are secured by an asset (your house).

Have you looked at the interest rates you would get if you managed to get an unsecured loan at 1.5 times annual salary?

Thank you to the three posts on the thread. I see why this is not a viable option...... Coming from Germany where the interest rates were so low I thought it would have been possible to explore loan options outwith the UK for this one. But even in Germany the interest is higher than the 6%. Didn't know about the T+C's relating to using personal loan for a purchase. Thank you for your replies.

Is to possible to use a personal loan to cover moving costs such a solicitors fees, remvoal fees etc, I am about £5k short.

I believe so. But I may be wrong. I think you just can’t use it against the actual property price IIRC.