Hoping to build: Can you put Wedding Costs into Mortgage without Bank knowing

[Bronte]

I don't think this is true (see my post above)
The OP is securing the cost of the wedding against their house, which is much more risky (for the OP) than an unsecured loan.

It doesn't matter if the loan is secured or unsecured. The bank will be coming after your house if you default on a personal loan. IT's easier ot get a personal loan because you have an asset. The mortgage is a relatively cheap way of borrowing, certainly cheaper than an overdraft or personal loan depending on the loan term etc.

 

[start]

Hi,
Thanks for all of the comments. We just want to know which is the cheaper option, not whether or not we will cancel the wedding as that is definitely going ahead.!!
Yes we are in secure jobs and Yes , We are all going to plan with the build , the mortgage and the wedding thankfully! Just to clarify a few points. The site was a gift from the parents so was free. We got a 315K mortgage and the final value will be in the region of 540K. The build will come in around 260k, so we have money to spare for the wedding if we wish to take up that option.

So my big question really is , should we take out 15-20 k for the wedding on a new 5 year loan or should we use 15-20k from the mortgage? Can someone do the Maths for me, I am not very good at Finance related matters like this .

Thanks

 

[Robin Banks]

So my big question really is , should we take out 15-20 k for the wedding on a new 5 year loan or should we use 15-20k from the mortgage?

Borrowing €15,000 euro

5 year personal loan at 8.4% will cost €3,421.53 in interest.
35 year mortgage at 5% (estimated long term average rate) will cost €16,795 in interest.

So you'd be far better off taking out the personal loan imo. There is also the additional benefit of being above board and not deceiving the bank/taxman etc.