mortgage free wanabe

redlynne

i am thinking of adding a loan to my mortgage, mortgage balance now at £57500 , 15 years left the loan is £7000 with 6 years left, i have been offered a good deal 4.77 fixed for 5 years payments will be less than i was paying when stuck on high rate, so will pay extra to get term down . do you think i should go for it.

marko21

It all depends on your interest rates and what is more beneficial to pay off first so as to pay less interest. I did a similar thing to initially ease the payments. Since doing the re-mortgage I have an overall higher balance obviously but i have since been able to overpay and am currently OP'ing 250 a month along with savings around 200. I would not have been in this position if I had not consolidated. This may well not work for everyone and the sums need to add up, but i my case it was the best thing financially I have ever done. Hopefully if things go to plan I will be MF by 2019 which will be 9 years early, I never thought that would be possible 2 years ago. Good luck in finding your way.

redlynne

thanks, i will work out best way to go, i am getting confused when comparing the 2 , i will write it all down as i go along.

Lois_E

Try having a play with Martin's mortgage calculator. Sorry, I'm too new to be allowed to post links, but if you click on the "mortgages & homes" tab at the top of the page and then click on "mortgage calculator" then you will get there.

You may be able to use the "compare two mortgages" feature, and see if the difference is more than the total repayments on the loan, or something like that. You can work out how much the loan will end up costing you by using the loans calculator on the "cards & loans" tab.