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Save for deposit or pay off unsecured NRAM off?
FCRangers
Posts: 76 Forumite
Hi guys,
I've got a NRAM together mortgage, it's split more or less like:
£4k unsecured Loan £23 a month (about £18 of it is interest)
£73k mortgage £388 a month
I've got £6k i'm saving for a deposit on a new house and I'm for about 25k on a 150k house.
Is it worth paying off the 4k unsecured section or just keep saving for my desposit.
the 6k is in my TSB ISA, think it's 2.5%.
We can save about £600 - 800 a month.
I've got a NRAM together mortgage, it's split more or less like:
£4k unsecured Loan £23 a month (about £18 of it is interest)
£73k mortgage £388 a month
I've got £6k i'm saving for a deposit on a new house and I'm for about 25k on a 150k house.
Is it worth paying off the 4k unsecured section or just keep saving for my desposit.
the 6k is in my TSB ISA, think it's 2.5%.
We can save about £600 - 800 a month.
0
Comments
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Depends which rate is highest. If you are paying more in interest on your loan than you are receiving in interest in your savings, pay off the loan.
If the opposite applies, do the opposite.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Will pay the loan, makes sense0
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You are paying 4.79% interest on the unsecured loan and mortgage. So paying down either will save you money when compared to the rate you are earning on your savings. You'll need to clear the unsecured loan when you remortgage (if you don't the interest rate rises). So paying it off now makes sense.0
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