advice please morgage or loan?

suemoz06

Hi everyone,
This is the first time i have written on a fourm, So i will just get on with it,

We have a very low morgage (less the 17K) at the moment we have a variable rate which alows you to pay as much as you like, and has no penaltys for paying off eairly, the payents less then £200 a month and we have 11 years left, this works out at something like 23K we will end up paying back, as dispite best intentions we have never paid more into it,

I would like peoples opinion, would we be better off with getting a loan paying it of faster with less intrest, but highr payments, or sticking out the morgate?
I think we shud get a loan my partner thinks we shud just up the morgage payments slightly each month, slashing the intrest and knocking years of it,

Any advice would be great!
thank you sue

getmore4less

Why would you want to take out a loan?

Unless you can find a loan at a lower rate than the mortgage rate(unlikley) stay with the mortgage

Change the one you have to a shorer term most leners will do this for a small/no fee if you want to increase the regular payment.

Cat695

just pay more into it!!!

you would be very silly to get a loan to pay off a mortgage (seeing as mortgages are vastly cheaper than loans)

do you have any savings??

torbrex

I was in a similar position a few years ago and what I did was to find a comfort level of monthly payments that was higher than my lender was asking but not so high that I could not manage a little savings as well.

From that starting point any extra income that I received was split 50/50 between my mortgage overpayments and my savings and am in the happy position to be able to pay off my mortgage next month some 9 years early and have savings left over.

After my experience I am now a great advocate of paying as much as you can as early as you can and wish I had started overpaying much earlier.

Good luck with your choice.

ailuro2

A 'loan' probably wouldn't be at as good a rate as a mortgage, but the simple fact is...

A mortgage is a loan!

You can call up your bank and ask then to take £200 a month extra every month, and be paying the same total amount as you would for a personal loan.

If your current mortgage is about £140, doubling your payment will reduce he time left by about 5 years.

Have aplay around with the egg calculator

ailuro2

http://new.egg.com/visitor/0,2388,3_54988--View_1028,00.html

here's the egg calculator...

I think you'll have to put in ta total mortgage term of 11 years

dimbo61

You are on a variable rate ! but you have not told us the rate or the
bank/ building society you are with.
Contact your lender and ask if they have any deals that you can change onto FEE FREE that will save you money.
Make sure you can still overpay and check out cash ISA,s as you should also
be saving into them for your future and retirement.
Work out if its better to save into ISA,s or overpay and bring down your mortgage term to say 8/9 years if you can afford the payments comfortable.
GOOD LUCK

wymondham

suemoz06 wrote: »

Hi everyone,
This is the first time i have written on a fourm, So i will just get on with it,

We have a very low morgage (less the 17K) at the moment we have a variable rate which alows you to pay as much as you like, and has no penaltys for paying off eairly, the payents less then £200 a month and we have 11 years left, this works out at something like 23K we will end up paying back, as dispite best intentions we have never paid more into it,

I would like peoples opinion, would we be better off with getting a loan paying it of faster with less intrest, but highr payments, or sticking out the morgate?
I think we shud get a loan my partner thinks we shud just up the morgage payments slightly each month, slashing the intrest and knocking years of it,

Any advice would be great!
thank you sue

Just overpay on the mortgage....