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Loan question

ivan_dunne
ivan_dunne Posts: 25 Forumite
Part of the Furniture Combo Breaker
in Loans
Hello,

I've got a mortgage, the interest on this is 4.24%. Got another 9 years on it.

Just seen a loan (from another bank) where (its seems) I can get a loan for just under my mortgage balance, and the interest is 3.0% fixed for the loan life (7 years).

Would you take a deal like this, or would you just pay extra every month on your mortgage?

Comments

  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Hi, just be aware that the 3% figure is a representative example and will only be available to the top 51% of borrowers. For everyone else (49%), that rate is subject to status. :)
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

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  • MallyGirl
    MallyGirl Posts: 7,003 Senior Ambassador
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    If you can get it at 3% I would be tempted to go for it - providing there are no early redemption fees.
    Have you actually tried to remortgage as there might be an even cheaper way to go if your credit is good.
    I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
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    All views are my own and not the official line of MoneySavingExpert.
  • pramsay13
    pramsay13 Posts: 2,063 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Also check for early redemption charges.
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