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Mortgage or Loan?
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PFItzyg
Posts: 1 Newbie
Hi folks,
Long term moocher, first time posting.
I would be grateful for some advise/experience.
My partner and I have a 9 year Base Mortgage Rate of £40k, currently at 2.5%.
We have £10k spare savings, are out of any fixed term and have £0 Early Repayment Charge.
My question;
Is it worth paying off our mortgage by getting a £30k, 6 year loan @ 2.9% to add to the £10k savings?
The payments would be approx. the same per month.
I like the idea of getting to the finishing line sooner rather than later.
Cheers,
P
:beer:
Long term moocher, first time posting.
I would be grateful for some advise/experience.
My partner and I have a 9 year Base Mortgage Rate of £40k, currently at 2.5%.
We have £10k spare savings, are out of any fixed term and have £0 Early Repayment Charge.
My question;
Is it worth paying off our mortgage by getting a £30k, 6 year loan @ 2.9% to add to the £10k savings?
The payments would be approx. the same per month.
I like the idea of getting to the finishing line sooner rather than later.
Cheers,
P
:beer:
0
Comments
-
Why do you want to increase the cost of your borrowing?
If you can afford higher interest rates, just use that money to overpay the mortgage.0 -
Pay the £10k off the mortgage and use the monthly payment you would have made on the loan to the mortgage instead.
You'll pay the mortgage back faster than you would have repaid the loan.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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