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Mortgage - pay off with a loan
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MandyL_2
Posts: 12 Forumite
Hello All
We have managed to get our mortgage down to £26,600. We're currently paying 6% but I think we worked out that it would be more expensive to change to a lower rate with another lender because of fees etc. We still have just over 15 years to run on it. We pay £230 a month, which includes overpayments, and we also put aside £220 a month, which we lump together now and again and send that off too to make overpayments. Anyway, have just read that Asda are offering loans up to £25k at 5.9%. I've just calculated that we could afford the monthly payments of about £410 over 6ish years on a loan of £25,000.
Should we pay off almost all our mortgage with a loan? We're currently on the market and so eventually would be changing our mortgage anyway and I was just wondering if this might be a good thing to do between now and then.
What do you think? I'm very tempted!
We have managed to get our mortgage down to £26,600. We're currently paying 6% but I think we worked out that it would be more expensive to change to a lower rate with another lender because of fees etc. We still have just over 15 years to run on it. We pay £230 a month, which includes overpayments, and we also put aside £220 a month, which we lump together now and again and send that off too to make overpayments. Anyway, have just read that Asda are offering loans up to £25k at 5.9%. I've just calculated that we could afford the monthly payments of about £410 over 6ish years on a loan of £25,000.
Should we pay off almost all our mortgage with a loan? We're currently on the market and so eventually would be changing our mortgage anyway and I was just wondering if this might be a good thing to do between now and then.
What do you think? I'm very tempted!
Mortgage down to £26,653:j from £36,653 in Jan '05
Quidco = £0, new member:rolleyes:
Mortgage redemption claim back from Halifax £35:T
Quidco = £0, new member:rolleyes:
Mortgage redemption claim back from Halifax £35:T
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Comments
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There are lenders out there that do not charge any fees for a remortgage.
You do not state if the ASDA loan rate is fixed or variable.
JoeKI am an Independent Financial Adviser.Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0 -
I think it is fixed. There is a Northern Rock one at 6.2% which is definitely fixed and has no early redemption penalties. Our mortgage is not fixed and so will rise next week if the interest rate goes up.Mortgage down to £26,653:j from £36,653 in Jan '05
Quidco = £0, new member:rolleyes:
Mortgage redemption claim back from Halifax £35:T0
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