Pay off some loan or use towards equity?
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Suarez
Posts: 970 Forumite
I am looking to move house but have a large loan.
Current House £90,000
Mortgage remaining £69,000
New House £90,000
New Mortgage £67,500
My income £15,000
Partner £10,000
One dependant
The only finance I have is a £19,000 loan. I have saved approx £10,000 so my main question is - would I be better using some of that amount to reduce the balance of the loan or better to put it towards the property equity to have a £60,000 mortgage instead?
Current House £90,000
Mortgage remaining £69,000
New House £90,000
New Mortgage £67,500
My income £15,000
Partner £10,000
One dependant
The only finance I have is a £19,000 loan. I have saved approx £10,000 so my main question is - would I be better using some of that amount to reduce the balance of the loan or better to put it towards the property equity to have a £60,000 mortgage instead?
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Comments
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What rate is the low and mortgage for different LTV.
How much are you paying and could you pay.0 -
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You will want to speak to a broker a 6k loan made 20k difference in our DIP with Halifax and we are not on much more than you 30k a year between us, no dependants.0
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I am looking to move house but have a large loan.
Current House £90,000
Mortgage remaining £69,000
New House £90,000
New Mortgage £67,500
My income £15,000
Partner £10,000
One dependant
The only finance I have is a £19,000 loan. I have saved approx £10,000 so my main question is - would I be better using some of that amount to reduce the balance of the loan or better to put it towards the property equity to have a £60,000 mortgage instead?
75% LTV is the trigger rate for cheaper deals.
May depend on the interest rate on the loan versus the mortgage.I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
getmore4less wrote: »What rate is the low and mortgage for different LTV.
How much are you paying and could you pay.
The mortgage rate would be 1.98%. The loan rate is 3.98%.
I'm paying £500 per month of capital off the loan at the moment including the capital element of the monthly payment.0 -
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I understand what you're saying but my question was more in terms of what would be better to get the actual mortgage. Do lenders prefer lower debts or higher deposit?0
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I understand what you're saying but my question was more in terms of what would be better to get the actual mortgage. Do lenders prefer lower debts or higher deposit?
Debts and deposit don't sit in different pots. What matters is the net balance. As that's how much equity you have. Nor do some lenders like a high unsecured debt level in relation to income. Loss of job/income means there's no where to hide.0
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