mortgage or loan

kandg

My partner and I cant agree on overpaying on our mortgage and hopefully when we come to remortgage get a better rate due to the ltv or overpay on a 10k loan and pay it off faster ( no penalties for either). What would you do? We will prob have about £300- £500 pcm to use for either.

ScotlandM

What is your current LTV and how big is the mortgage, and a remortgage date?
We'll then see if you could pass from one LTV band to another.

Also, interest rates of the mortgage and the loan?
No one can give an informed response without numbers.

Generally, pay of the loan as it will be a higher interest rate and any better LTV for the mortgage will not make a huge change in the short term. Perhaps dropping under 75% LTV could make an impact.

If you overpaid the loan how long before it would be finished? Then even large payments on the mortgage

droiderm

My personal opinion (assuming your mortgage won't be finished in the next few years ) unless there is a huge different in figures would be to pay the loan off. That might not be money saving, but I am assuming your monthly committments would go down more by clearing the loan, than making (what maybe) minor reductions in your mortgage payment (even then only if you keep your mortgage term the same).

kandg

Hi

Its a 95% mortgage - £500 pcm over 30 years - fixed for 3 years
Its a 5 yr 10k loan at £200 pcm

Both taken out in the last 3 months

kidmugsy

kandg wrote: »

Hi

Its a 95% mortgage - £500 pcm over 30 years - fixed for 3 years
Its a 5 yr 10k loan at £200 pcm

Both taken out in the last 3 months

What are the two interest rates?