Advice please

clangnuts

£20k on a new car isn't a lot these days,and not necessarily an extravagant purchase. Can easily spend that on a Focus or an Astra.

paddyrg

If the OP hasn't been scared off, it is probably cheapest to add it to their mortgage as secured lending is typically cheaper than unsecured.

That said, if the car is new, the manufacturer may run promotional finance options which work out cheaper overall, and then once the house is paid off and all yours, you have the monthly mortgage amount to put ttowards overpayment.

As for opinions about the car itself, none of us know the exact car and circumstances. Maybe it is a third-hand Bentley which has reached the bottom of its value range, maybe it is a collectible Jag which increases in value when restored, or maybe it is a tool for their business. None of us know. Would I spank £20k on a motor personally? Probably not. But if I had nearly paid off the house and needed a new land rover to get around my farm, so could afford a nice one, well maybe. But that's me, OP's decision is their own, they've clearly been savvy enough to pay off 23 yrs of a mortgage, who am I to question?!

Apples2

Wants a 20k car
Needs a 20k loan.

Are the maths that complicated?
The op is not a money saver of any description
The op cannot afford this car.

If he wanted a 50k car and had a 30k deposit, I'm sure lots would advise on lowest rates.
I am in no doubt if the op had 20,000 in the bank he wouldn't be giving it all up for a car.

cos_2

Borrowing from your mortgage lender may be cheaper than from banks, which currently are lending at or around 6%.

You can check online what your total repayments would be with, for example, Sainsbury's over 3 or four years. Once you've done that, have a chat with your mortgage provider and find out how much the same advance would cost you in total repayments - discuss keeping the same schedule or extending it as well. Also, if they would be prepared to lend in the first place!

I'm assuming you have income to cover all this, so it would become a choice of which option is cheapest.

Moneymash

(20k+interest)- Car depreciation for the lenght of the loan = ego!
Don't fall into the trap of thinking it's any kind of compliment the bigger the loan. The finance company is not complimenting your money management skills or exemplary credit report, they're just assessing if you're good for the interest they're going to slice off your future income and financial freedom.