Mortgage or loan.

from_atozinc

Hi

Depending on house we buy and work to be done on the new house, we may need 30,000 euro - 100,000 euro.

When does a bank loan turn to a mortgage ? Like do the banks have a figure of iover 80,000 euro you need, then that's a mortgage......anything under is s loan

And which is the cheapest to get - mortgage or loan ?

Sorry - these must seem like really silly questions.

Paulw

Mod Note: This is more a banking question, so you should get a better answer here.

deseil

from_atozinc wrote: »

Hi

Depending on house we buy and work to be done on the new house, we may need 30,000 euro - 100,000 euro.

When does a bank loan turn to a mortgage ? Like do the banks have a figure of iover 80,000 euro you need, then that's a mortgage......anything under is s loan

And which is the cheapest to get - mortgage or loan ?

Sorry - these must seem like really silly questions.

Credit union is where id be going in your position.

from_atozinc

deseil wrote: »

Credit union is where id be going in your position.

Why is that ?

peteb2

A mortgage is a bank loan secured against your property.

from_atozinc

deseil wrote: »

Credit union is where id be going in your position.

I thought credit unions were only for loans of roughly 5-10k ?

from_atozinc

peteb2 wrote: »

A mortgage is a bank loan secured against your property.

Fair enough.
What's a loan secured against ?

phormium

There are a few issues here to consider when deciding which is the best option for you.

Banks usually have a limit of what they will lend in an unsecured loan and your upper figures are probably well above it therefore a mortgage may be the only option. They also have minimum mortgage amounts and your lower figure is below most I would say. They usually offer longer mortgage terms than CUs.

Mortgages usually have substantially lower rates than personal loans unless the loan is secured on the property with a simple deposit of deeds which is a version of a mortgage but with less legal fees.

Credit Unions all differ but the bigger ones offer the equivalent of mortgages which is basically a secured loan as they take the property as security. For that you will get a larger amount than an ordinary unsecured loan, a longer term but probably not longer than 10/15 yrs depending on the CU. Rate will more than likely be higher than bank mortgage rate but lower than CU unsecured lending rate. Sometimes easier to get a CU loan rather than from a bank depending on your circumstances but again your upper figures are not amounts that would normally be lent by any lender without security.

from_atozinc

phormium wrote: »

There are a few issues here to consider when deciding which is the best option for you.

Banks usually have a limit of what they will lend in an unsecured loan and your upper figures are probably well above it therefore a mortgage may be the only option. They also have minimum mortgage amounts and your lower figure is below most I would say. They usually offer longer mortgage terms than CUs.

Mortgages usually have substantially lower rates than personal loans unless the loan is secured on the property with a simple deposit of deeds which is a version of a mortgage but with less legal fees.

Credit Unions all differ but the bigger ones offer the equivalent of mortgages which is basically a secured loan as they take the property as security. For that you will get a larger amount than an ordinary unsecured loan, a longer term but probably not longer than 10/15 yrs depending on the CU. Rate will more than likely be higher than bank mortgage rate but lower than CU unsecured lending rate. Sometimes easier to get a CU loan rather than from a bank depending on your circumstances but again your upper figures are not amounts that would normally be lent by any lender without security.

Thanks a million for taking the time to reply.

So looks like I will have to wait and see how much I will need to borrow and then choose.