Hi

 

I wonder if you can help, I am currently purchasing a new motor home for £42000k which was going to be paid for by the sale of the house. Unfortunatley the sale of the house has fallen through but we are still going to go ahead with the purchase. What I need to know is what is the best and cheapest way of financing this due to the fact that when the house does sell I will be paying off the loan, so do not want to incur any or very little charges for early resettlement.

I know loans over 25K are not regulated so is it best that I get a personal loan for £25K & let my husband do the same as I know we can get an APR of 7.5% (have not found out yet if there is arrangement fees or what the early settlement calculations would be), but if I get a secured loan it will be 8.2% with no arrangement fee & the early repayment is 28days + 1 months interest.  I have thought about an equity release loan which is a smaller APR but has arrangement fees & early resettlement fees if I repay before 2 years of about £1K.

Can you help and advise me which would be the best.

Thanks

In my view a personal loan would be unsuitable as these are geared to making fixed payments every month for the next umpteen years and there is often a penalty for repaying early. Talk to a building society about a bridging loan although I'm unsure if this could be made for a motor home unless the value of the house is high enough to cover the mortgage, the moto home and some margin for error.