adding £10k to mortgage

vangal

Would I be better adding 10k to my mortgage at 3% rather than taking a personal loan. I would pay the same amount as the loan would cost, on top of my monthly mortgage payment (350) so I just want to clarify that this would still make sense financially since its a much lower interest rate and I'll be clearing the 10k in 3 years anyway.

Hope this makes sense:D

WellKnownSid

What is the 10k for? Home improvements, some painted metal with wheels to go outside the property, or tickets to somewhere hot?

vangal

Wheels lol

WellKnownSid

In terms of mathematics, then - yes - it will cost you less money to borrow the £10k at 3% assuming that you were to have the fiscal responsibility to overpay as you claim, assuming there aren't any additional fees or charges, and your rate isn't changing for the whole product due to LTV. But I think you already know that.

Is it stupid to use a 25 year product secured on the roof over your head to pay for something which will depreciate away to nothing in three years? Cue Churchill dog...

Oh yes...