what should I do to pay off mortgage

nivehc

Hi I have a very small mortgage by todays standards, only £25000 over a 25 year period, I have been paying it of monthly for the last 2.5 yrs, last week I received a junk mail offering loans, I noticed that I could get a loan for 20000 over 84 mths and only pay 4000 interest, a massive saving,this has started me thinking that surely there must be a way f paying this off, I have inquire with the bank (Abbey) and they inform me that if I increase the payments to £300 per mth I will cut 12 yrs of it, However I am wondering what would be the best overall strategy.
Any help or advice much appreciated.

kirst

IMO your probably better to stick with the mortgage and reduce the term........check with your mortgage re interest rates compared to the loan.....also, these junk mail offerings arent all as they may seem, usually when you call up to get a loan, they say you dont qualify for the lowest rate and try to offer you the loan at a higher interest rate.

Hope that helped a minisule bit
k