Short(ish) Loan to pay off Mortgage
Posted: March 14th, 2018, 6:40 pm
I'm at a stage of only having 4-5 years left on my mortgage, and I've looked at getting a personal loan to pay off the mortgage.
I can get a loan that is at a lower interest rate than the mortgage, so that in keeping my loan repayments the same level as the mortgage, I can repay the loan a little more quickly than the mortgage.
I haven't looked at re-mortgaging as I assume there will be an arrangement fee for this. I need to check if there is any penalty in repaying the current mortgage early.
The outstanding balance on the mortgage is a couple of tens of thousands of pounds or so.
I have a similar amount, if a little more, in ISA share savings.
Are there any down sides to this route?
Many thanks
I can get a loan that is at a lower interest rate than the mortgage, so that in keeping my loan repayments the same level as the mortgage, I can repay the loan a little more quickly than the mortgage.
I haven't looked at re-mortgaging as I assume there will be an arrangement fee for this. I need to check if there is any penalty in repaying the current mortgage early.
The outstanding balance on the mortgage is a couple of tens of thousands of pounds or so.
I have a similar amount, if a little more, in ISA share savings.
Are there any down sides to this route?
Many thanks