We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Interest vs Loan apr
pull2eject
Posts: 1 Newbie
Hi Folks
I am new to the forum and thought I would take the bold step of asking some advice from the MSE comunity.
I have been a mortgage payer since 97 and what was originally a 42k endowment mortgage in joint names became mine after my ex wife did a runner in 2003.
It increased to 74k after I payed her out since she had no interest in having a mortgage.
I managed to change the mortgage to a repayment and have since been chipping away at it and even used some inheritance to pay off a chunk of the 74k I was left with.
The mortgage is made up of 3 loans £2,400 @ 1.25% discounted with 6 years to go
£4,725@ 4.49% SVR with 12 years to go
and £21,807@1.25% discounted with 6 years to go
All discounted rates are for the lifetime of the mortgage with full flexibility i.e overpayments and payment breaks etc. Plus there are no fees for early repayment of the whole amount.
I was wondering as interest rates are bound to increase at some point, would it make sense to hammer down the 4.49% with a 5k loan @3.5% for say 3 years.
The balance is now around 28k and I'm just not sure what options I have in regard of being mortgage free.
Any advice would be wonderful.
Regards Nick
I am new to the forum and thought I would take the bold step of asking some advice from the MSE comunity.
I have been a mortgage payer since 97 and what was originally a 42k endowment mortgage in joint names became mine after my ex wife did a runner in 2003.
It increased to 74k after I payed her out since she had no interest in having a mortgage.
I managed to change the mortgage to a repayment and have since been chipping away at it and even used some inheritance to pay off a chunk of the 74k I was left with.
The mortgage is made up of 3 loans £2,400 @ 1.25% discounted with 6 years to go
£4,725@ 4.49% SVR with 12 years to go
and £21,807@1.25% discounted with 6 years to go
All discounted rates are for the lifetime of the mortgage with full flexibility i.e overpayments and payment breaks etc. Plus there are no fees for early repayment of the whole amount.
I was wondering as interest rates are bound to increase at some point, would it make sense to hammer down the 4.49% with a 5k loan @3.5% for say 3 years.
The balance is now around 28k and I'm just not sure what options I have in regard of being mortgage free.
Any advice would be wonderful.
Regards Nick
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards