5yr fixd vs personal loan to pay off

Sparky001

With a few places still.offering 3% personal.loans and only having 5yrs to go with £25k left, I'm wondering what disadvantages there would be justt doing a 25k personal loan and paying off the mortgage.
Monthly payment difference is about a couple.of quid maybe a fiver more for a personal loan but then its unsecured not against the home. With the term and amount left there is very little interest to pay so 1/2 % between a mortgage and personal.loan isn't mich over 5 years (less that a cheap trip.to the off licence per month)
Reading up I'm trying to find out if there are any gotchas in this.
Any devlis advicate advice would be appreciated

madvicker

To be honest, if you can get a similar rate of interest to a fix - it would actually be worth doing. For the simple reason that you would be transferring a secured debt to unsecured debt - and the house would then be fully yours.

middleclassbutpoor

Check the 3% rates are those being offered on the amount - i.e. that these rates are not restricted to amounts under £25k

Also consider that when you apply that may not be the rate they offer.

sammyjammy

Sure it would change the lending from secured to unsecured but unless your planning on defaulting I don't see the benefit in this for such a shot term particularly if its not cheaper?

What do you see as the actual benefit other than "feeling better about the lending"?

getmore4less

Why not also look for 0% money on spending credit cards.

With the right cash flow you can save interest.

Dan137uk

I looking at the same thing carry one with the mortgage 35k or get a personal loan. The loan saves me 900 quid over 48 months. But is fixed where as I can drop the mortgage payments down as I over pay.