We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Remortgage or homeowner loan?
Newheight13
Posts: 238 Forumite
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?
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
0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.5K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.5K Work, Benefits & Business
- 601.4K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards