Funding loan when mortgage free

markhunter99

Hi all.

First a bit of background on a loan I have taken out to pay for solar panels:

Cash value: £5500
Interest rate: 5.75%
APR: 5.9%
Repayments: £60 over 10 years
Total amount repayable: £7258.57

I live in a mortgage-free house worth around £290,000 and am 34 years old. I was wondering if anyone had any clever ideas of how I could use my house/mortgage-free status to replace this loan with something that would a) free up a lump sum now, or b) stretch/delay/reduce the payments in some way. I need to save for a new boiler quickly and spent everything on the house!

Obviously if all other options end up with me paying considerably more over time then it's not worth it, but I wondered if there were any options out there that might enable me to either pay this loan off at a cheaper rate or, at worst, reduce the monthly payments.

Any help would be appreciated.

Cheers,

Mark

leespot

A larger bank loan to cover the existing loan and new boiler??

YorkshireBoy

Investigate 0% 'money transfer' credit cards from MBNA and Virgin. Approaching the end of the intro period you'd then attempt to BT the debt to another, ordinary, 0% BT card*.

But even if you can keep it on 0% interest, it'll still take over 7.5 years to pay off at £60 a month...and you want to reduce the payments!!


* If you find you then can't BT the debt on, or miss a payment and lose the 0% rate, then your 5.9% APR loan will become a c.20% APR credit card debt.

markhunter99

Thanks for the suggestions - will look into them.

Mark