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Mortgage Equity or Personal Loan to finance a car
Hi I've just used £22,000 in equity to buy a car but can't help thinking I'd be better off using a personal loan. I am mindful I'll pay more over the term of the mortgage but monthly repayments will be lower vs. paying higher monthly amount but less interest. Total cost of loan dilemma ??????
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Comments
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How long is your equity loan taken for?
It's a no brainer that a personal loan will be cheaper if you are borrowing for more than 5 years but as you presumably have already paid the fees etc with taking out an equity loan????????0 -
ejones is right. The longer the term, the more interest. You should only take this equity loan over a maximum of 5 years. This will factor the depreciation costs of the car.
Why did'nt you just carry out hire purchase? It seems you have brought a brand new car?Motto: 'If you don't ask, you don't get!!'
Remember to say thank you to people who help you out!
Also, thank you to people who help me out.0 -
presumably the mortgage deal was at a low APR... if you can overpay the mortgage then you can combine benefits of the low rate with reducing the the loan period.0
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