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Have I made the right decision?
dinkylou
Posts: 727 Forumite
Evening people.
I have a bit of news which I wanted to share and get peoples opinions on. Its a bit long winded so bear with me.
Following advice on here and doing some research myself, I have decided to remortgage to get a better rate. (not increased loan and taken over slightly shorter period so all good)
This will save me about £40 per month which I am happy about.
But I have a company loan which is interest free over 2 years (£1124) with a second charge on my house.
With the remortgage, I was given the option of either repaying it in full or paying a fee to have the charge postponed (£150)
I thought about this for a while as I do have the loan amount in savings and was thinking about using it for a good holiday or keeping for emergencies.
This only leaves me with £400 ish in savings should anything happen or come up. (I have a house and live alone)
I decided to get rid of this loan and pay it off, even though it is interest free (plus the £150) and cut back on hol plans etc
Have I made the right choice? Its not too late to change this if there is a better way.
Any ideas?
I have a bit of news which I wanted to share and get peoples opinions on. Its a bit long winded so bear with me.
Following advice on here and doing some research myself, I have decided to remortgage to get a better rate. (not increased loan and taken over slightly shorter period so all good)
This will save me about £40 per month which I am happy about.
But I have a company loan which is interest free over 2 years (£1124) with a second charge on my house.
With the remortgage, I was given the option of either repaying it in full or paying a fee to have the charge postponed (£150)
I thought about this for a while as I do have the loan amount in savings and was thinking about using it for a good holiday or keeping for emergencies.
This only leaves me with £400 ish in savings should anything happen or come up. (I have a house and live alone)
I decided to get rid of this loan and pay it off, even though it is interest free (plus the £150) and cut back on hol plans etc
Have I made the right choice? Its not too late to change this if there is a better way.
Any ideas?
0
Comments
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I would have got rid of the loan as well if it is any help.Bank Balance: In the black for the moment.
Sainsburys Loan: Cleared July 2010
Credit cards: AMEX Airmiles Card: direct debit set to clear balance monthly
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Well I guess it depends on how much interest the £1,124 would have got you in 2 years? I suspect not £150 so I think you did the right thing!
:T 0 -
I think you are doing the right thing completely I think
:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
Thanks SS, LA and Lynz,
Thats pretty much what I was thinking.
If my calcs are roughly correct then even with the £150 fee, the loan changes from being interest free, in effect, to about a 10% loan.0
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