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Savings v mortgage loan
Hi
I need to borrow £5k to assist a family member and am not sure whether to borrow on my mortgage or use my savings.
I have a small flexible mortgage with Nationwide, currently owing £2.2k which is due to end in August next year. Over the years I have overpaid so I have credit of £20k which I can draw down without penalty. They have said I can borrow the extra £5k paying £225 per month over 36 months which equates to approximately £750 interest.
I have £18k savings in an ISA paying 6% interest.
I am now retired and don't really want to deplete my savings so I am gearing towards borrowing on my mortgage re above but I am not sure this is the right thing to do.
Any advice would be appreciated.
I need to borrow £5k to assist a family member and am not sure whether to borrow on my mortgage or use my savings.
I have a small flexible mortgage with Nationwide, currently owing £2.2k which is due to end in August next year. Over the years I have overpaid so I have credit of £20k which I can draw down without penalty. They have said I can borrow the extra £5k paying £225 per month over 36 months which equates to approximately £750 interest.
I have £18k savings in an ISA paying 6% interest.
I am now retired and don't really want to deplete my savings so I am gearing towards borrowing on my mortgage re above but I am not sure this is the right thing to do.
Any advice would be appreciated.
0
Comments
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Basically if you can borrow at a lower rate than your saving earn (after tax) then borrow otherwise us your savings...
whether its wise to lend to a family member is another matter0
This discussion has been closed.
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