Hi All
We're trying to get ourselves into a position so that we can move in the not too distant future. We currently have a mortgage with NRAM and an unsecured loan. We also have secured loan with another provider that is due to finish in Decmber 2017. The secured loan also has an 'incentive' in place that we will receive £3k upon the final payment (it's there to act as a deterrent for paying back sooner)! We do have credit card balances, however we have a schedule to pay these off by the end of the year. Anyway figures below
Mortgage: £106k
Unsecured Loan: £27k
Secured Loan: £16k
So, our house has been valued at £150,000 and when we move we would like to be able to purchase a house for say around £180000. Come January next year we're going to be able to throw any spare money we have (circa 1k a month) at getting ourselves in the right position to be able to move. So where to start?
I've thought about paying off the secured loan, but the question is will the amount saved in interest be equal to or more than the incentive? Is there any way to calculate a point at which the scales would tip in favour of continuing onwards with the loan to the ten year point? Also does a secured loan cause us more problems when remortgaging than an unsecured loan?
Then I think the balance on the loan with our mortgage has barely moved an inch in the last 6 years and is costing us the most money in the long run. When we took out the loan it came with a catch that if we moved our Mortgage from Northern Rock then the interest rate would go up. Will the New NRAM enforce that even though we are unable to remortgage with them? Should we pay this down as much as possible to help with our mortgage application?
With regards to the mortgage itself, we always pay on time, we overpay by a little each month £22.00
I think I've given you all of the information I can think of, please can you help me figure it all out!!!! :)
Many Thanks
Nikkei
We're trying to get ourselves into a position so that we can move in the not too distant future. We currently have a mortgage with NRAM and an unsecured loan. We also have secured loan with another provider that is due to finish in Decmber 2017. The secured loan also has an 'incentive' in place that we will receive £3k upon the final payment (it's there to act as a deterrent for paying back sooner)! We do have credit card balances, however we have a schedule to pay these off by the end of the year. Anyway figures below
Mortgage: £106k
Unsecured Loan: £27k
Secured Loan: £16k
So, our house has been valued at £150,000 and when we move we would like to be able to purchase a house for say around £180000. Come January next year we're going to be able to throw any spare money we have (circa 1k a month) at getting ourselves in the right position to be able to move. So where to start?
I've thought about paying off the secured loan, but the question is will the amount saved in interest be equal to or more than the incentive? Is there any way to calculate a point at which the scales would tip in favour of continuing onwards with the loan to the ten year point? Also does a secured loan cause us more problems when remortgaging than an unsecured loan?
Then I think the balance on the loan with our mortgage has barely moved an inch in the last 6 years and is costing us the most money in the long run. When we took out the loan it came with a catch that if we moved our Mortgage from Northern Rock then the interest rate would go up. Will the New NRAM enforce that even though we are unable to remortgage with them? Should we pay this down as much as possible to help with our mortgage application?
With regards to the mortgage itself, we always pay on time, we overpay by a little each month £22.00
I think I've given you all of the information I can think of, please can you help me figure it all out!!!! :)
Many Thanks
Nikkei