Mortgage or loan ????????????

daisymaisy123

Hi this is my first post and I don't know if this is the right place for this.
My mortgage is with Lloyd's tsb .
(actually 3 sub accounts and all small amounts).
My question is would I be better to re mortgage into 1 or take out a big loan instead, here are the details as taken from my march 07 statement.

Sub account 1
Balance at 31 march 2007 =£11209.16
New payment from may 2007=£144.07
Made up of
Mortgage £127.53
Mortgagesure monthly premium £16.54
calculated rate of interest of 5.54%.
early repayment charge =£224.14 /no loner apply after 31 oc 2008

Sub account 2
same layout as above
£2805.22
Payment £31.92
Interest 5.54%
Early repayment charge £56.00/ na after 31 oct 2008.

Sub acc 3
£9477.53
Payment £107.83
interest 5.54%
Early payment £189 / na after 31 oct 2008
We both pay life insurance to cover the mortgage totalling £46 which we could stop if we get a loan instead.
I am trying to reduce the costs as I am not very well and will probably have to finish work soon.
Sorry for the long post but don't know what details you will need to help me.
jess

daisymaisy123

Anyone know if a loan would be a better option or not.?
I forgot to say I am 49 and hubby 54.
daisy

daisymaisy123

That's a no then !!!!!!!

CLAPTON

The basic mortgage rate seems quite reasonable at 5.54% so is the only issue the life insurance?

What is your thinking about this?
Don't you feel your need it?
Could you both cope financially with the others death?
Do you have alternative insurance?
Can you simply cease the insurance payments if its otherwise prudent?

Otherwise I see no benefit in changing.. you have a reasonable interest rate, you face early redemption penalties of about 500 and additional fees for a new mortgage and I can't see an ordinary loan coming in less than 5.54% APR.

daisymaisy123

CLAPTON wrote: »

The basic mortgage rate seems quite reasonable at 5.54% so is the only issue the life insurance?

What is your thinking about this?
Don't you feel your need it?
Could you both cope financially with the others death?
Do you have alternative insurance?
Can you simply cease the insurance payments if its otherwise prudent?

Otherwise I see no benefit in changing.. you have a reasonable interest rate, you face early redemption penalties of about 500 and additional fees for a new mortgage and I can't see an ordinary loan coming in less than 5.54% APR.

Hi insurances are attached to the mortgage and reduce as it does but the payments stay the same, I also have mortgage sure so don't think I need both of them.
I was thinking of taking out just straight forward life insurance for a set amount.
Thanks for your input I was beginning to think I was invisible Lol.
Daisy