What is so bad about a secured loan?

MarkyMarkD

So, consider taking 2 and then switching it for a further 2.

Going to a second charge lender is unlikely to make the situation more simple in a few years' time.

paddeo

>>So, consider taking 2 and then switching it for a further 2.<<

Ye trouble is the g*ts what to charge valuation fees etc etc every time we start a new deal, so that would be fees now and fees in two years.

As i have mentioned in another thread I have approx 11k in an ISA. Should i switch all that out so that i have to borrow less?

Thanks for your continuing advice

MarkyMarkD

I don't know of any lender who charges valuations fees if you are just switching products and not increasing your borrowing amount. I can understand product application fees, but not valuation fees.

There's no point switching money out of your ISA unless your ISA rate is lower than your borrowing rate - and if you have a decent ISA, and a decent mortgage, that won't be the case.

Xbigman

paddeo wrote:

That is one of the problems, we have 4 years left of current deal, and Clydesdale are only offering 2 or 5 years on the new amount meaning that one will expire before the other.

This is your real problem and it severely limits your options. The best course of action would be to wait 4 years if you can. If you can't wait you are choosing between two evils. Or you could wait two years and get everything in sync.

There's no clear cut answer I'm afraid.
Regards


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moneysavingwannabe

Hi,

We are also having an extension and have saved nearly enough in ISAs.

But I think we are pretty much settled on using all the money in ISAs because then we can start to build our savings up again instead of paying loans and interest.

I think I would probably put the ISA money in which would reduce your monthly payments and enable you to pay it off more quickly.

I suppose it depends how old you are and whether you will be able to save more later??

Xbigman

There is also a consideration of scale. If you can afford to put money in ISA's every year to the point where you are hitting the limits then protecting the ISA allowance from previous years is quite important. If you save less than the ISA limit each year you can treat the money with a lot more flexibility because you can catch up in future years if you want to.
Regards



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