I don't know if i should add my personal loan to my mortgage when remortgaging. I have to pay to exit my mortgage as there is 5 years left
The fixed rates around now are half of what my rate is. I have to pay £4000 to leave my lender but if I added on my personal loan I would be paying the same per month as I am now, but with less interest. My husband retires in ten years time and at the rate of interest I have now,I would still owe quite a considerable amount at the end of my mortgage term. My husband thinks i should just pay off the personal loan and stay with our mortgage lender to avoid paying the exit fee. What do you think? thanks
Without having full details of your mortgage, the penalties and the loan, it is very difficult to answer this question.
One thing you should consider is the saving on the mortgage over the next 5 years, compared to the penalty you would have to pay. You might find that you would save more than you would have to pay.
This should be a separate dicision to adding your loan to the mortgage balance. When diciding whether or not to add "unsecured" loans to your mortgage, you should think about the consequencesof having the loan to be secured on your property. Also, the term of the mortgage pay be longer than the term of the loan, therefore you may end up paying more in interest over the longer term, even though the interest rate is lower.
Should you want to discuss your details in more detail, and in confidence, please feel free to call me on 03332 407040 (standard landline rates apply). Or drop me an email, by clicking on my name above.
Paul | 03.26.12 @ 12:33