We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Advice Needed - Pay the Mortgage or the Loan
DarenFairhurst
Posts: 1 Newbie
Hello all
I could do with a bit of advice please. I currently have a mortgage and a loan with the Northern Rock both charged at the same fixed interest rate (7.9%). The mortgage is a repayment mortgage which allows for overpayments to be made which not only reduces the balance owing but also the repayments that will be made based on this, whilst the loan is unsecured and spread over a 18 year period for £30000. The loan does not reduce the repayments although overpayments can be made at no charge
As an examiner I earn reasonable lump sums (£2000-£4000) twice a year and I would like to use this money to begin to pay off my debts. The question basically is which one of the two should I pay off? I know that repaying the mortgage at this time might be better to keep pace with the fall in house prices and will lead to lower repayments as a result whilst I know that the loan repayments will be a constant £180 per month.
Some advice would be helpful!
I could do with a bit of advice please. I currently have a mortgage and a loan with the Northern Rock both charged at the same fixed interest rate (7.9%). The mortgage is a repayment mortgage which allows for overpayments to be made which not only reduces the balance owing but also the repayments that will be made based on this, whilst the loan is unsecured and spread over a 18 year period for £30000. The loan does not reduce the repayments although overpayments can be made at no charge
As an examiner I earn reasonable lump sums (£2000-£4000) twice a year and I would like to use this money to begin to pay off my debts. The question basically is which one of the two should I pay off? I know that repaying the mortgage at this time might be better to keep pace with the fall in house prices and will lead to lower repayments as a result whilst I know that the loan repayments will be a constant £180 per month.
Some advice would be helpful!
0
Comments
-
Seems like a no-brainer - go for the mortgage.poppy100
-
Morgage every time :money:0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.5K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.5K Spending & Discounts
- 245.5K Work, Benefits & Business
- 601.4K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards