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Mortgages or personal loan.
Hope this is in the right place.
Can anyone advise me please. I am currently mortgage free but looking to purchase a vehicle and financing £12500. I can get a loan with APR 2.9 so over 36 months I'll pay 362 over 48 275. I can meet these no problem but if I buy it on my mortgage, the account is a virgin one and interest is around 4%, will this be cheaper? I'm thinking with the odd over payment on my mortgage account it won't take me 36 months to pay the debt. Any suggestions welcome
Can anyone advise me please. I am currently mortgage free but looking to purchase a vehicle and financing £12500. I can get a loan with APR 2.9 so over 36 months I'll pay 362 over 48 275. I can meet these no problem but if I buy it on my mortgage, the account is a virgin one and interest is around 4%, will this be cheaper? I'm thinking with the odd over payment on my mortgage account it won't take me 36 months to pay the debt. Any suggestions welcome
0
Comments
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No, 4% interest won't be cheaper than 2.9%.0
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No its more expensive at 4%0
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Nope.. It's more expensive0
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Can you simply compare a mortgage % to a credit APR % like this? Bear with me... the credit % is APR and the monthly repayment is fixed regardless of how much of the loan is paid off. Not so with a mortgage: the repayment amount decreases as time progresses (assuming inflation etc. remains fixed). So in my mind this is not a simple like-for-like comparison.
Or am I being stupid? (Probably).
Andy0
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