loan or cash

somethingcorporate

Gaz83 wrote: »

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.

Re-read the OP, the options are debt on the house (mortgage) or debt on the caravan (loan).

The logical consideration should be which works out more cheaply - by, as per the first few posts suggest, a comparison of the rates.

There is certainly a psychological argument for being mortgage free but it's certainly not the rational thing to do.

andyfromotley

There is huge appeal to many to be mortgage free though, rational or not.

CLAPTON

andyfromotley wrote: »

There is huge appeal to many to be mortgage free though, rational or not.

I guess that's helps explain why some get rich and some are less so.

somethingcorporate

andyfromotley wrote: »

There is huge appeal to many to be mortgage free though, rational or not.

Indeed, exactly what I put in my last sentence about the psychological appeal.

I can see and feel the draw myself but haven't wholeheartedly attacked the mortgage because I know logically it is better used elsewhere.