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loan or cash
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I have just received a final payment of my endowment of £30,000 my mortgage doesn't finish until 4 years time . At the moment I owe £20,000.
I would like to buy a static caravan for £36,000 would I be better paying for it cash and continue with my mortgage on my house or paying off my mortgage and taking out a loan.
I would like to buy a static caravan for £36,000 would I be better paying for it cash and continue with my mortgage on my house or paying off my mortgage and taking out a loan.
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what is a apr of your mortgage
what is the likely apr of any loan0 -
Depend on the rates of the mortgage and the loan.0
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It depends on the rate of the loan you would take out for a caravan. If it is less than the rate on your mortgage then pay off your mortgage. It is more likely though to be higher so you would be better off using your endowment to buy your caravan and continue with the mortgage. How are you going to pay your mortgage off in 4 years though?I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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enthusiasticsaver wrote: »It depends on the rate of the loan you would take out for a caravan. If it is less than the rate on your mortgage then pay off your mortgage. It is more likely though to be higher so you would be better off using your endowment to buy your caravan and continue with the mortgage. How are you going to pay your mortgage off in 4 years though?
This?
You have to use the money for this unless you have a reasonable and cheap alternative.£1000 Emergency fund No90 £1000/1000
LBM 28/1/15 total debt - [STRIKE]£23,410[/STRIKE] 24/3/16 total debt - £7,298
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I personally wouldn't care if it's going to end up costing me a couple of grand in the long run with the higher APR of a loan - I'd get the mortgage paid off ASAP."Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0
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Quite the opposite. But the peace of mind of knowing that I owned my house outright, would never have to pay a mortgage again and was never going to be at any risk of losing my home is worth more than a couple of thousand pounds in interest to me.is that because you are very rich and wasting money doesn't matter to you?"Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0 -
Quite the opposite. But the peace of mind of knowing that I owned my house outright, would never have to pay a mortgage again and was never going to be at any risk of losing my home is worth more than a couple of thousand pounds in interest to me.
you can be made bankrupt for a debt over 750
so if you had unsecured debts that you couldn't pay, your house would be a risk0 -
Obviously the situation would be different if I was in any debt. But here the OP is debating whether to take a loan to buy a caravan or pay off their mortgage - no debt involved."Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0
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Obviously the situation would be different if I was in any debt. But here the OP is debating whether to take a loan to buy a caravan or pay off their mortgage - no debt involved.
the OP is asking how best to fund a debt: either maintaining the mortgage or clearing a mortgage and getting a loan;
both ways he will have the same, total debt :
many would suggest getting the debt with the least interest.0
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