mortgage or loan?

TRIVICA

hi,

currently i have 23 years left on my quarter share home mortgage but like all mortgages after a couple years it looks like it's going no where. so tried looking at another soloution and found that if i borrow the amount i need in a loan then the same payments i make each month would only take me 10 years to pay off.

any advice would be welcome. cheers.

nomoneytoday

I would check your figures again TBH.

KiKi

I'd be very surprised if you found a loan at such a lower rate than your mortgage. In addition, many lenders won't allow loans to cover what a mortgage should.

KiKi

TRIVICA

£21,000 left @ £170 a month for 23 years +
£100 month loan over 5 years

£25,000 @ £300 a month over 10 years pays off both and nocks off 13 years of payments. the comaparison for interest rates i've not really looked at.

Tixy

You need to look at the interest rates to get a true comparison.

If you can afford £300 a month then you could be paying £200 to your mortgage at the moment and then once your loan is paid off up your mortgage payments to £300 a month - which would mean your mortgage would take a lot less than the 23years to repay.
(Obviously you'll need to check your mortgage allows overpayments).

Getting a £25k unsecured personal loan is not very easy these days. It would obviously depend on your financial situation and how much you earn etc.

You might be better off just finding out the APR on your current loan and considering if you could get a cheaper deal on that alone.

redpete

TRIVICA wrote: »

£21,000 left @ £170 a month for 23 years +
£100 month loan over 5 years

£25,000 @ £300 a month over 10 years pays off both and nocks off 13 years of payments. the comaparison for interest rates i've not really looked at.

It's not taking out the loan that means you pay it back quicker, it's paying significantly more a month that pays it off. If you paid the same amount to the mortgage it would be paid off in much less than 23 years.

Have you checked to see if you can overpay your mortgage to have the same monthly payments?

(Just noticed you've got a quarter share in the mortgage, this could complicate things.)