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Advise on what to do next
Carl_Fitz
Posts: 23 Forumite
My current mortgage deal is due to come to an end in december, the outstanding balance will be a little over £20k, which I want to pay off in 5 years. Am I better off getting a loan over 5 years as the interest rate on loans is only 6.5% rather than another mortgage?. Also if I did get a loan, would a loan company allow me to get a loan to pay off a mortgage, or would I have to lie about what I need the cash for?
Cheers, Carl.
Cheers, Carl.
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Comments
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I would have thought that generally you can get a better deal on your mortgage than on a loan.
If as you say 'loans' are charging 6.5% at the moment, I'm sure you can fix a mortgage at about 6% at the moment anyway. Come december if rates are higher, which I suspect they will be, both rates will have increased, meaning that your mortgage is still probably a better deal.
I suspect you are comparing your mortgage rate from the SVR - Standard Variable Rate which may be as much as 7%-8%. I'd advise you to get a 5 year fixed mortgage arranged a couple months in advance of going onto the SVR, the fixs at the moment, as discussed earlier, can be got for around 6%. That way you know exactly what your payments are, for the remainder of your mortgage, stress and hassle free.I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.
That also means I cannot share in any profits from any decisions made!;)0
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