loans for my morgage

belly0788

I have 3 separate loans to make up my 75k mortgage I think I have been ripped of by my bank as I am paying 3 lots of interest on top. any body got any advise please. I haven't got any spare cash to transfer my mortgage. I have had to put my house up for sale as I can no longer afford the monthly payments.

Thrugelmir

Why do you believe that you are being ripped off?

ACG

Lets say the loans are £25k each - 3x 25 = 75.

How does it make any difference whether you are paying interest on 3x £25k instead of 1x £75k?

R_P_W

What's your problem? If the loan interest rates are the same across the three loans then that no different to having one loan with that interest rates.

I suspect you have re mortgaged at some point to borrow more money? Perfectly normal each loan will be at different rates.

No rip off

belly0788

I am paying 3% interest on each loan. wouldn't it be better just to pay interest on one full loan? it was 8 years ago when I took the mortgage out. I am paying a lot of interest instead of paying my mortgage off.

Let_Us_See

3% on each loan is the equivalent of 3% on the whole (combined) loan.

Check if you have interest only mortgage(s) as this would account for interest payment with no repayment of capital.

ViolaLass

3% is not a bad rate either.

StuC75

(25 * 0.03) + (25 * 0.03) + (25 * 03)

is the same as

(75 * 0.03)


How long a term did you take the mortgage over?

The Key Facts Document you would have received will show that on repayment mortgage there is more interest to capital repayment in the split of what you pay.

Its the mid \ later years where the interest charged is lower and so more comes off the balance (assuming payments are not reduced at that time)..

75k over 25 years at 3% is about £355 per month.. whats made things so un-afforadable?

belly0788 wrote: »

I am paying 3% interest on each loan. wouldn't it be better just to pay interest on one full loan? it was 8 years ago when I took the mortgage out. I am paying a lot of interest instead of paying my mortgage off.

ValHaller

belly0788 wrote: »

I am paying 3% interest on each loan. wouldn't it be better just to pay interest on one full loan? it was 8 years ago when I took the mortgage out. I am paying a lot of interest instead of paying my mortgage off.

I have a feeling it would be very easy for someone to sell you a single loan for the whole amount at 6%, on the argument that 6% is less than 3 lots of 3%.

If you agree with the reasoning and you would take up an offer like that, then please read and understand the posts here. Your lack of understanding could cost you some serious money.

_Andy_

There is no rip off, stop blaming others.

shop-to-drop

3% is an excellent rate if you are struggling with this you need to check out your other spending as this rate will likely be going up not down.