Loan to pay off mortgage - is it a good idea?

johnofhertford

I can't see how taking out a loan to pay off your mortgage will ever be a good idea. If you have a really expensive mortgage rate then switch to a cheaper one, and put it on a repayment basis, for whatever period you can pay it back over.

Whether to cancel your endowment depends on what you'd get if you cancelled, compared to what you'd get when you complete. It may be that you don't get the full value of the endowment unless you let it run its course, although you're quite a long way in, so it may be OK.

jobbingmusician

johnofhertford wrote:

I can't see how taking out a loan to pay off your mortgage will ever be a good idea. If you have a really expensive mortgage rate then switch to a cheaper one, and put it on a repayment basis, for whatever period you can pay it back over.

I could be wrong, but I thought it would be difficult to take out a mortgage over 4 years in the example I gave above. (I'd be genuinely interested to hear if people think differently).