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Loan for mortgage?
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Jono
Posts: 61 Forumite
Hi all,
I’m after a bit of a reality check on the following:
My situation is that I’ve got a £40k mortgage with the One Account (6.10% daily) – I’ve discounted looking at a different provider as the setup fees will be proportionally high compared to the money borrowed.
I see that the “MoneyBack” loan is 5.60% (p.a), so to give myself a bit of a “fixed rate” deal, is it worth borrowing £20k (3 to 5 years)? I would expect the BoE base rate to increase again. The penalty for early repayment is one month’s interest on the loan.
So my question is, how does the daily rate differ to the yearly rate? And is this a sensible thing to do?
I’m after a bit of a reality check on the following:
My situation is that I’ve got a £40k mortgage with the One Account (6.10% daily) – I’ve discounted looking at a different provider as the setup fees will be proportionally high compared to the money borrowed.
I see that the “MoneyBack” loan is 5.60% (p.a), so to give myself a bit of a “fixed rate” deal, is it worth borrowing £20k (3 to 5 years)? I would expect the BoE base rate to increase again. The penalty for early repayment is one month’s interest on the loan.
So my question is, how does the daily rate differ to the yearly rate? And is this a sensible thing to do?
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