Mortgage without indefinite leave to remain, desposit in another account etc.

varghesejim

stephcyl wrote: »

Not necessarily. If we have only 10%, the rate will be about 4.59% for the initial 2 years while 15% brings it to 2.69% for the 2 years.
I can get a loan of £15k for 3.6-3.7% from Sainsburys or Nationwide for 2-5 years which I can pay back before the end of the year. That way I would have saved us quite a bit of money. Infact, with 10%, my repayments will be about £400 more per month:mad:
Unless there are other things I haven't thought of about the maths and that's it's bot as straightforward as I thought

If the rates that you have given is what you can get, then you are right. Couple of points you need to verify

4.59 is way too high interest. You should be able to get an interest rate of 3.5 at least with 10% interest. Your lack of ILR might be an issue. When you get ILR more lenders will be available to you which might make a difference.

I personally had a bad experience with Sainsbury's. I applied for a loan seeing their low interest rates and at the end of application they just told me the interest rate is much higher. So don't assume you will get their advertised rates.

The point here is make sure you get a cheaper loan to pay off your more expensive loan.

stephcyl

varghesejim wrote: »

4.59 is way too high interest. You should be able to get an interest rate of 3.5 at least with 10% interest. Your lack of ILR might be an issue. When you get ILR more lenders will be available to you which might make a difference.

Because I only know of halifax, they are the ones am using and yea, 4.59% is a lot. I hope we can get it better elsewhere though