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To save or to pay off my debts ?
Hi People
Point me in the right direction please.
I am self employed for just 2 years and find it difficult to get competitive loans/mortgages.
*I am buying a property £200k with a self cert mortgage on an INTEREST only basis @ 6%.
*I have a £15K overdraft @ approx 7% from my business manager to help pay a deposit on this
*i have a £30k unsecured loan @ approx 9.5%.
Do i start straight away saving to pay off my interest only mortgage in 20 years.... or do i concentrate on paying off the loans which carry a much higher rate of interest.
My worry is the timescale to pay off these loans.It could be a few years before i even start looking at saving for the mortgage!
**I also currently owe £120k on my business premises (Guest House)which is valued at £280k so am looking at my friendly Business manager to add the £30k loan onto this.
Any advice appreciated
cheers
woostoon.
Point me in the right direction please.
I am self employed for just 2 years and find it difficult to get competitive loans/mortgages.
*I am buying a property £200k with a self cert mortgage on an INTEREST only basis @ 6%.
*I have a £15K overdraft @ approx 7% from my business manager to help pay a deposit on this
*i have a £30k unsecured loan @ approx 9.5%.
Do i start straight away saving to pay off my interest only mortgage in 20 years.... or do i concentrate on paying off the loans which carry a much higher rate of interest.
My worry is the timescale to pay off these loans.It could be a few years before i even start looking at saving for the mortgage!
**I also currently owe £120k on my business premises (Guest House)which is valued at £280k so am looking at my friendly Business manager to add the £30k loan onto this.
Any advice appreciated
cheers
woostoon.
Val 
0
Comments
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Pay £1000 off the outstanding motgage capital debt and save £60 per annum thereafter.
But pay £1000 off your 9.5% debt and save £95 per annum
All other things being equal always pay off the debt with the highest interest rate first................................I have put my clock back....... Kcolc ym0
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