Want to borrow £3000

googlemyusername

Hi all, I need £3000 to put towards a car , I only have a mortgage for £50000 and pay £318 a month for it. When I took it out I remember them saying there was extra cash available if I wanted it. Whats everyone opinion on borrowing £3000 onto my mortgage and uping my monthly payments by £150 to pay this back quickly?

macman

If you can remortagage (will there be an additional fee though?) then yes it can be a cheap way of borrowing, depending on your mortgage rate.
But not if you are still paying off a car loan in 25 years, long after the car has gone to the breaker's...
Or you could wait a year or so and you'd have that £150pm saved to put towards the car anyway-that's £1800.

hunnie

Hello,
I did this in the 90's.
Took out a mortgage for an extension, then increased it to finance an ensuite and a new car.
No problem as they weren't really bothered what the money was for as long as there was enough equity and the repayments were affordable.
It was, at that time, cheaper than a car loan and I too increased my mortgage payments in order to repay quickly.

Cheapest form of borrowing usually, as long as you repay in a reasonable time.

Regards
Hunnie