Your thoughts/advice would be appreciated

seadoo

Hi Guys & Gals

I will start with a summary of what i owe and then what i have and my plan.

Loan 1 = £69,200 fixed @ 5.3% until Dec 06
Loan 2 = £30,300 fixed @ 4.95 until Aug 08
Both the above have 21 years to run with the Abbey and early repayment charges apply on term.

Currently (just started) making an overpayment of £500 a month on above.

Access to savings of £55,000 in December this year.

What I was thinking of doing was changing loan 1 to a flexible at end of current term and paying the £55k in as a lump sum then sticking with the payment as at today of approx £1150, which includes the £500 o/p.

As I say any thoughts/pitfalls would be welcome.

Cheers

P.S Have been speaking to the Abbey over the last few weeks re the above I got more insight to what can and can't be done on this forum within a couple of hours. Excellent site.

roswell

Seadoo,

Just a thought but is the over payment of 500 on just one loan or split or 500 on each ?

Thefunkygibbons

Sounds like a good plan, but once you have cleared loan one, will you then have to save until Aug 08 before being allowed to overpay on loan 2. It is unlikely to be worth paying repayment charges