Loan Advice

ODogg

Hi All,

Was wondering if you could help me. Im very new to this sort of thing, and my knowledge of loans etc is minimal.

I have a £5000 Overdraft, which I want to clear ASAP. I want to loan £7000, to clear my Overdraft, and also build a fence around my back garden. I am a home owner, and have a mortgage, however no other outstanding debts on credit cards etc.

Myself and my partner are both working, so we are in a position where we could afford to pay approx £100 a month back on the loan, but no more. We have had a quote from Lloyds which seemed reasonable enough - £103 a month to pay back on a loan of £7000 over 7 years. Other people have told me to add it onto my mortgage - Im on a fixed rate mortgage at the moment so was wondering how I would go about doing this, and whether it is the best option?

Sorry if Im not making much sense....first time.

Hope you can help
Thanks in advance

jonesMUFCforever

How long have you to go on the mortgage?
With the loan you know that it will be paid off in 7 years (or less if you overpay when you can) - if you put it on the mortgage you will be paying the interest for years and years.

mrmajika

Lloyds TSB loans are tiered. The more you borrow the cheaper it becomes.

The best rates are for £7.5k and above.

If you were to borrown £7.5k instead of £7k you might find that the total repayable is less on the higher amount.

It's worth checking out.