Advice needed - Remortgage/personal loan?

catsnfings

I need some help please.
I have a £20,300 mortgage which I want to pay off. I have an endowment mortgage which has 13 years left and I basically don't want to pay interest for the next 13 years and then still owe the £20k. L & C have advised that I stay with Halifax as it is not financially worthwhile changing. The house is half owned by Housing Association if that makes any difference.

My current deal with Halifax is coming to an end and Halifax have said that I can switch to repayment and fix my rate over the 5 years at 7.29%. This works out at £404 p.m

As the amount I owe is so low I was looking at whether to get a personal loan instead of £20k. The lowest I have found is 6.7% and works out at £392 p.m.

Whilst only £12pm, over the course of the 5 years it's another £720 I would save. Am I allowed to pay off my mortgage with a personal loan? If I am - is it something I should do? and should I go for a secured or unsecured loan?

I was going to leave the £300 with Halifax so I don't have to pay the deeds release fee??

Any thoughts would be appreciaited as I'm getting so confused with what to do.
Thanks

busy_b

I'm no professional, but I would certainly shop around and not just stick with Halifax as there are some better fixed rate deals available.

Regarding using a loan to pay off your mortgage, if you were totally honest on the application form, you'd probably find it difficult to borrow "for the purpose of paying off your mortgage" (but I'm sure you're aware of this).

Sorry for the pretty basic advice - Good Luck.

dimbo61

hi catsnfings,
you stated that your home is half owned by a housing assocation !
how much is the house worth ? how much rent do you pay to the
housing assocation ? would you like and can you afford to buy the other
half ? this depends on your age 25 year mortgage ? and income?
what is the endowment worth if you sell it.
you need to find more information if you want to buy WHOLE house !!