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Over pay mortgage or loan?
*Summertime*
Posts: 68 Forumite
Please can you guys help me with my decision...
Current mortgage on the SVR (£153,000 left to pay worth approx £180,000).
Loan £13000 plus interest at 14.9%.
Mortgage abroad increases by £300 per month in 2014.
I am confused at what to over pay on. Do I throw every spare penny at my loan with a view to paying this off completely come 2014 and thus having more money each month for my mortgage abroad.
Or
Use these rare times to chip away as much of my mortgage as possible to bring my LTV down. The only thing with this is come 2014 I would probably need to borrow a little extra to clear down my loan (consolidate it) so I have some spare cash to pay my other mortgage.
I know my loan APR is higher but surely when looking at the amount of money I am paying a lot more back in interest to my mortgage lenders?
Thank you for reading!
Current mortgage on the SVR (£153,000 left to pay worth approx £180,000).
Loan £13000 plus interest at 14.9%.
Mortgage abroad increases by £300 per month in 2014.
I am confused at what to over pay on. Do I throw every spare penny at my loan with a view to paying this off completely come 2014 and thus having more money each month for my mortgage abroad.
Or
Use these rare times to chip away as much of my mortgage as possible to bring my LTV down. The only thing with this is come 2014 I would probably need to borrow a little extra to clear down my loan (consolidate it) so I have some spare cash to pay my other mortgage.
I know my loan APR is higher but surely when looking at the amount of money I am paying a lot more back in interest to my mortgage lenders?
Thank you for reading!
0
Comments
-
Overpay the highest rate. (SVR is meaningless whats the rate and future rates if it changes)
Terms are irelevent it is the amount you pay and interext rates that determines the actual costs.0 -
Keep chipping away at the loan.
On the figures you state your LTV taking both loans into account is still above 90%. So your options are limited to say the least.0
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