Can anyone help please I am so confused. We want some home improvements which will cost £11k. Builder can start asap. We have our second baby on the way so we are trying to be careful with repayments. So what's best, take out a loan at 3.5%. Monthly repayments are around £200 which makes me nervous with 2nd baby on the way. We will have to tighten our belts. Or. Increase our mortgage loan. We are currently at 49% loan ratio so there is room. We have 28 years left to pay! Our current monthly interest is 1.5% we pay just under 700 a month. Does anyone know which is more cost effective? I called the bank and they said I can make an appointment to find out monthly impact but I cant get childcare for my son today to do this