pay off mortgage with a loan??

Polly2251

Hi
I am new at this (just joined today):jso haven't had much time to check out all the threads! :rolleyes: So if I am repeating anything I apologise!:p
I am 57 and have £39,000 left to pay on my mortgage. I currently pay and extra £245 per month but am worried about the next possible hike in mortgage rates. I have a five year deal (started in March 2007) with Nationwide at an interest rate of 5.93%. I can get a 5 year loan at 7.9% (not actually applied yet but this is what money supermarket say). Would I be jumping from the frying pan to the fire? Should I try to pay more than the £245 extra that I do?
Pleas help me out of this mire?
Thanks
Polly

~Beanie~

I really don't that is a very good idea, apart from anything else you won't get an unsecured loan for £39K.

I don't really understand why you are considering taking out a loan at a higher rate to pay your mortgage? Also, the 7.9% quoted is a typical rate, the rate they offer you would porbably be higher.

What kind of 5 year deal do you have, are there penalties for early repayment?

_Andy_

As indicated above, there are two flaws with what you're proposing - 1) You won't get an unsecured loan for that amount and 2) It would make no financial sense to do so as the interest would be higher anyway.