Best type of loan

[Nerdybeethoven]

Just interested to know what others would do / have done.

I'm nearly 50. Husband 2 years younger.
13 years left on mortgage
House value £375 k
Balance on mortgage c. £95 K

Would like to borrow up to £20k for some home improvements.
Stretched over something between 13 and 17 years (ie the term left on our mortgage, up to the age I expect to retire).

Could probably afford £150 per month tops, on top of all our other outgoings (and hope I remain fit enough to work until 67!)

So confused about

• what will happen to interest rates. We have fixed rate on the mortgage until 2021, so already aware our outgoings could go up after that. Would rather than a fixed rate on any loan for the term, just to be sure we can budget
• unsecured v secured loan (I know, in principle, the difference but looking at products advertised on website, it's not clear which is which)
• can't seem to get a rough quote online for secured loan without submitting all my details. Which seems a risk. I just want an indication of costs, so I can decide if we can afford it. Don't want to apply yet.
• think I've found some long-term personal (unsecured?) loans online but not actually sure what I'm looking at
• should I talk to my mortgage bank first

Any pointers would be much appreciated. It's all so chicken and egg: can't work out if we can afford the home improvements until we know how much money we can afford to borrow.

I guess, really, we should see a financial adviser??

Have you tried doing an application for a personal loan with your bank? Usually if you go on their website they will give you a decision within a couple of minutes and you don't have to do a full application. If you have a good credit score and affordability is fine you should get a cheap unsecured loan rate. The only way I can see you needing to go down the secured route is the loan term. Most banks only offer unsecured loans over a max of 7 years. Unsecured will also be quicker (I'm a mortgage adviser in a bank )

Thanks RiverMeadow: I did have a look at my mortgage bank's website but that seemed complicated too. I guess I could give them a call tomorrow. I don't think I'd get an unsecured loan, though, because I'm looking for c.15 years.

So, where do I go to get a secured loan? Are they considered dodgy?

I'm getting more confused by the minute! Ideally we'd just add £20k and a couple of years to our mortgage, but I'm not sure it works like that.

Ok if you need 15 years it will probably need to be a secured loan. Absolutely nothing dodgy about it at all, people do it everyday. It's just borrowing money at the end of the day. Get in touch with your mortgage provider and they will give you some figures. You can then have a think about them and decide if it's what you want before you commit

See if you can increase your mortgage.

So pissed off. Just rang my mortgage lender. Answered a few basic question about what I wanted the money for

• garden office /music studio for my kids

clueless youngster on the other end of the phone. Put me on hold and then came back to tell me the underwriters said that they don't lend money for 'that purpose'. I asked for clarification and she wouldn't / couldn't give it to me. Impossible to talk to an underwriter ('they don't talk to customers') and apparently nobody more senior in the entire call centre to talk to? Currently on hold... not holding out much hope.

Can this be true?
What was the trigger to them saying no? the mention of 'music' or 'working from home'. I'll quite happily not put my work computer in it, if it matters that much. We basically just need an extra family room and this is cheaper than an extension.

Really fed up.

Where can I go for a secured loan? Do I have to go to my mortgage provider (who are clearly shit - took a few more details ,and now on hold again) or can I go somewhere else. We're tied into our current mortgage deal until 2021, so can't move it and remortgage.

I realise I didn't give reason for the loan in my original message.
We want a garden room (soundproofed) in our large suburban garden. Something like 3x4 m. Don't need planning permission. Just basically a posh shed, but soundproofed so the kids can do their music practice in there. Basically an extra room for us - probably better than a conservatory but cheaper than an extension (which would stretch us too much). I happen to work from home (employed, not self-employed) so, in theory, I might sit in the garden room with my laptop, but it's not specifically a home office. I think when I said home-working, and music, it must have set off some triggers. Does that sound likely River Meadow? Shame I couldn't actually talk to the decision makers instead of having to have a go-between who, bless her, couldn't get her head around any of it.
After 55 mins on the phone, I now have a mortgage review scheduled for Thursday also on the phone as the local branch doesn't have a mortgage adviser any more.
All very dispiriting.

Yes you can get a secured loan, it will sit as second charge to your mortgage. There are lots of secured loan brokers around you don't need to use your mortgage provider. Technically the loan is for home improvements, they will ask you what it's for and you can say home improvements but you could say anything. Different lenders have different criteria but home improvements is a reason to borrow so you should be fine. Let me know how Thursday goes!

RiverMeadow - you're being very kind and patient! There's no rule against lending for garden buildings, then?! I am frankly appalled by the 'computer says no' approach I got on the phone today. I've looked up a couple of local financial advisers in the area who claim to help with secured loans so I'll see what they say too. Thanks again

I've not ever had someone do a loan for that specific purpose but surely it comes under driveways etc as garden improvements so I genuinely can't see why there would be a problem. I hope you get sorted. Let me know how it goes.

Got an appointment tomorrow for telephone interview with my mortgage lender. Woman called just now to check that's still ok. I told her I wasn't too happy so far with the process after ridiculous hour spent on phone on Monday. She also sounded a bit iffy about the purposes for which I want the money. I am so frustrated. Basically it's like a conservatory we want but not attached to the house. Obvs I made it sound like I'm trying to run a business from my garden because I said 'home office / music studio'. My fault for making it sound posher than it really is. I seem to have shot myself in the foot. So disappointed. Ridiculous as we have loads of equity in the house and could manage what I would anticipate the monthly repayments would be.

Are you still going to your appointment? You can just explain you meant an outhouse or summer house

It's one of these we'd like. Non-commercial use only.
Www.garden2office.co.uk

Appt is on the phone as it seems impossible to talk to a person face to face. Ridiculous.

I can't see why there would be a problem with that as long as you stress it's only for personal use. That's gorgeous btw

Fingers crossed! Yes it's lovely isn't it? Cheaper and theoretically less hassle than an extension. It's going to be my mum-cave. I'll retreat there and lock myself in!

It will be amazing! Also good alternative to an extension! I hope it all goes ahead for you.

Try Zopa .... 4.8%
we borrowed over 5 years but repaid in 1 - no penalty

interest rates are going nowhere above 1% for 5 years
not above 2% for 15 years
dead cert

Can only afford it if we spread it over 15 years or so (we have regular income, but are very careful with debt as salaries aren't massive) so the average personal loan of up to 7 years is no good at all.