Debt Dilema

bommer

Wondered if you could give me some advice on the following.

I have loan with Northern Rock 5.6% with £3543.30 outstanding due to finish in September 09.
I also have alongside my fixed rate mortgage a further advance which is on the standard variable rate - currently 7.09% with £6444.09 outstanding with 17 years left to run. Obviously this has just gone up twice.

I pay £120.95 per month on loan and £55.67 per month for further advance.

I was thinking of getting £10,000 loan hopefully at 5.9% to combine the two. The payment per month for 72 months would be £164.77 which saves me £11.85 per month but would enable me to pay the further advance off earlier and bring it in line with when an old endowment policy matures which we are hoping to pay a large chunk of our mortgage off with.

Any advice gratefully received.

OberonSH

Don't forget with longer to run, you will end up paying more in interest over the long term.

bommer

In a way that was what prompted me. I will be paying the £6.5k which is presently 7.09 over 17 years with the chance that this will go up again.

I don't know how much difference it would be between the two

3.5k at 5.6% with three year left so increasing this by 0.3 of % over six years.
6.5k at 7.09% with seventeen years left so decreasing this by 1.19% and reducing term to six years also fixing the rate.

Millionare

bommer wrote:

Wondered if you could give me some advice on the following.

I have loan with Northern Rock 5.6% with £3543.30 outstanding due to finish in September 09.
I also have alongside my fixed rate mortgage a further advance which is on the standard variable rate - currently 7.09% with £6444.09 outstanding with 17 years left to run. Obviously this has just gone up twice.

I pay £120.95 per month on loan and £55.67 per month for further advance.

I was thinking of getting £10,000 loan hopefully at 5.9% to combine the two. The payment per month for 72 months would be £164.77 which saves me £11.85 per month but would enable me to pay the further advance off earlier and bring it in line with when an old endowment policy matures which we are hoping to pay a large chunk of our mortgage off with.

Any advice gratefully received.

Northern Rock 5.6% with £3543.30 for 29months = £246.95 interest

7.09% with £6444.09 outstanding with 17 years = 204months = £3773.43 interst

total = £4020.38 interst

£10,000 loan hopefully at 5.9% at 72 months = £1847.70 interest

figures are about right so seems good to me!:D go for it

pudding06

Maybe this may have been better posted on the loans board, not meaning to suggest others may not be able to help but I know I cant advise you on this. On the loans board they dedicate their lives to this type of stuff from what I've seen lol.

pudds

edit - and then there millionaire of course - sorry crossed post.lol