Loans

TAFDREW

Help,
I want to pay my morgage off i have the capital to do this, but Im thinking why use my Money when I can get a loan. is this a good idea or am i just dreaming?
Any help or advice on this matter will be greatly accepted.

southernscouser

Why would you want to get a loan and pay interest on it when you have the money?

And surely the APR of a loan will be more than what your mortgage is?

What pro's do you see in getting a loan?

Robert_Sterling_3

Are you just dreaming. I think so.

HGLTsuperstar

Please share with us where you can get a loan with such a low interest rate, that you can beat with the return on your savings? So this loan will be at a rate of what 2%, where can I get one? WAKE UP!

Rafter

First Posting guys! Be nice!

A lot of people have a tough time giving up their savings and would rather take out a loan - even though financially it is unlikely to be in their best interests.

Anyway......

TAFDREW,

Whether this is the right decision depends on a number of factors.....

What are the exit costs from the mortage, what rate are you paying, what return are you currently getting on your Capital? Is there any exit costs from using capital (for example selling shares and paying capital gains tax)

Why would you prefer an unsecured personal loan to your mortgage?

Because of the effect of taxation on savings, but not on borrowing, it is often hard to justify holding onto savings and borrowings at the same time. It used to be very different when mortgage interest tax relief was around.

Perhaps if you get back to us with some numbers we can offer some more specific advice.

R.