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Remortgage or homeowner loan?

Newheight13 Posts: 236 Forumite

1 October 2022 at 7:58AM in Mortgages & endowments

I currently have a car loan for around 10k at around 20% APR

I was hoping to remortgage a year early, take an ERC hit and bring that 20% down with remortgage rates of around 5% as my current rate is 6% due to a CCJ. Now that rates have gone up, I’m in two minds whether to wait and pray that rates stay around 4.5% in a year’s time and just take a homeowner loan for 10k which I believe will be around the 5% mark. At the same time, I don’t want a homeowner loan to cause issues when I remortgage other than affordability?

It would save me around £130 a month getting a homeowner loan but are the repercussions worth it, if any???

Thanks

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Remortgage or homeowner loan?

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