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108K mortgage but £21K on SVR - move to loan?
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[Deleted User]
Posts: 0 Newbie
Current mortgage total is £108K. Just over 13 years left.
£87K of this is on a cracking lifetime tracker rate of BS+1.1%. The other 21K was on special rate which has just ended so reverting to SVR.
Obviously, I dont want to remortgage the whole lot because I won't get a better rate. BUT, the lender RBS won't let me change the £21K sub account because its below their minimum of £25K.
I was considering paying this £21K by maybe a personal loan over 7 tears. Tesco 3%. If my calculations are correct it'd be £100 a month more than this part of my mortgage would be BUT it'd be done in 7 years and I'd save £1000s in interest.
The £100 a month is probably doable. BUT what are the disadvantages of moving from secured to non-secured borrowings?
I've already got a few credit cards (all balances on 0%) so would the fact that Ive now got £21K more unsecured debt (although £12K less secured debt) have a negative impact on my ability to get credit cards/loans in the future? Or doesnt it mater if its secured or unsecured debt?
£87K of this is on a cracking lifetime tracker rate of BS+1.1%. The other 21K was on special rate which has just ended so reverting to SVR.
Obviously, I dont want to remortgage the whole lot because I won't get a better rate. BUT, the lender RBS won't let me change the £21K sub account because its below their minimum of £25K.
I was considering paying this £21K by maybe a personal loan over 7 tears. Tesco 3%. If my calculations are correct it'd be £100 a month more than this part of my mortgage would be BUT it'd be done in 7 years and I'd save £1000s in interest.
The £100 a month is probably doable. BUT what are the disadvantages of moving from secured to non-secured borrowings?
I've already got a few credit cards (all balances on 0%) so would the fact that Ive now got £21K more unsecured debt (although £12K less secured debt) have a negative impact on my ability to get credit cards/loans in the future? Or doesnt it mater if its secured or unsecured debt?
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Comments
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You need to find out what the SVR currently is.
You may want to just throw more at the debt to clear it in less than 7 years if it's cheaper than the Tesco loan.0 -
Deleted_User wrote: »You need to find out what the SVR currently is.
You may want to just throw more at the debt to clear it in less than 7 years if it's cheaper than the Tesco loan.
4.25% but obviously that may go up. If I get the loan at 3% its fixed at that yeh?
Yes I could overpay but I'm paying 4.24% until its paid off. Surely I could so the same with the loan but only pay 3%?
Of course, I'm just committed to pay at least the £100 extra a month then.0 -
What happens if you dont get a loan at 3% and it is offered at 8.2% or moreMortgage started 2020, aiming to clear 31/12/2029.0
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MovingForwards wrote: »What happens if you dont get a loan at 3% and it is offered at 8.2% or more
Pretty sure I can get a loan at 3%. Obviously, not worth it at 8.2%.
I guess bottom line is which would affect my credit rating/ability to get credit more?
20K on my mortgage or 20K less on my mortgage but £20K personal loan as well?0 -
Anyone know?0
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