Borrowing options for £15K?

CLAPTON

ami_cherry wrote: »

I've checked an there is no overpayment or early payment charges with the 4.99 remortage. So I should only pay £750 in interest over the 5 years (or less if I clear it quicker). Can someone explain what iolanthe07 meant by 7.55 APR being better than 4.99?

he was making the point that 15,000 loan at 4.99% over 20 years may cost more in interest than 7.55% over 5 years
but as you can overpay and so clear the additional debt in five years this is irrelevant

iolanthe07

CLAPTON wrote: »

he was making the point that 15,000 loan at 4.99% over 20 years may cost more in interest than 7.55% over 5 years
but as you can overpay and so clear the additional debt in five years this is irrelevant

Thanks - I couldn't have put it better myself! I paid off my last mortgage in 1994, and there were certainly no overpayments allowed; it was linked to an endowment. I suppose it depends on the type of mortgage you have.