We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Should I consolidate?

I've got £63,000 at 4.88%, and £18,000 at 2.5% with Nationwide.
Should I consolidate these loans and move to the 5 yr fix of 3.89% at First Direct?
I estimate fees to be around 2500 in total.
All advice appreciated.
Mongy
Jan GC £28-49/£120 NSD's 15/17
Dec GC £90-90/£140 NSD's 17/18
Storms make oaks take deeper root

Comments

  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    More information needed

    What are the full terms of both loans followon rates fixed periods left penalties etc.
  • mongmoney
    mongmoney Posts: 174 Forumite
    Mortgage-free Glee!
    4.88% is a ten year fix, ends sept 2016, with remaining term 12 yrs.
    2.5% SVR with remaining term 7 yrs.
    Mongy
    Jan GC £28-49/£120 NSD's 15/17
    Dec GC £90-90/£140 NSD's 17/18
    Storms make oaks take deeper root
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Can you overpay the 10 year fix?
  • mongmoney
    mongmoney Posts: 174 Forumite
    Mortgage-free Glee!
    I am overpaying £50 a month on the 10yr fix, am allowed to overpay up to £500 a month without penalty.
    Mongy
    Jan GC £28-49/£120 NSD's 15/17
    Dec GC £90-90/£140 NSD's 17/18
    Storms make oaks take deeper root
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Then I would overpay the 10 year fix by as much as possible. Spending £2,500 to consolidate gives little benefit when it could be used to reduce the capital balance owing and correspondingly reduce the amount of interest you are paying.

    While a five year fix looks attractive. You need to consider what rates will be longer term.
  • mongmoney
    mongmoney Posts: 174 Forumite
    Mortgage-free Glee!
    Ok, I thought this might be the case> thanks for the input:j
    Jan GC £28-49/£120 NSD's 15/17
    Dec GC £90-90/£140 NSD's 17/18
    Storms make oaks take deeper root
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 353.9K Banking & Borrowing
  • 254.3K Reduce Debt & Boost Income
  • 455.2K Spending & Discounts
  • 246.9K Work, Benefits & Business
  • 603.5K Mortgages, Homes & Bills
  • 178.3K Life & Family
  • 261K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.