Hello everyone,
I'm looking at remortgaging my house to treat myself to a car. I already know this is NOT MSE philosophy, and have debated about not buying it and chipping away at the mortgage. I have approx £65k equity in the house, after devoting near 3 years putting life on hold to rennovate-blood,sweat and tears...not to mention money. I might even have more money in the house as that is comparing to the other houses on the market (at a less price than they are selling for, and mine is way more modern, energy efficient, desirable than them).
The mortgage is low, but not low enough to say pay off in 5 years kind of scenario. I could do 10 years, but it would mean 10 years with no treats, and I'm wanting to find a bit of a balance. I really think I deserve a treat, and I guess I've always been so cautious I'm just looking for reassurance probably (silly I know).
From doing some maths on moneysupermarket. I could remortgage, take out £20k for the car (and some other repairs I wish to do on the house). Comparing the repayment of existing mortgage, and term it works out to be £50 a month more payment on my existing mortgage. If I reduce the term by say an extra 5 years, it means I pay an extra £100 a month.
I've just had a promotion at work, which will equate to a near £150 pay rise per month. So, on paper remortgaging the house seems the best way to buy the car. It would almost be unoticable and I can manage it as I'm a good saver. I know insurance and petrol will go up.
Just wondering if anyone has any opinions upon remortgaging. Surely there's no way a personal loan could be cheaper? I also don't want any alternative cars at the moment (which I've considered). I could buy this one, then sell it in the future to buy a cheaper one. As I say I'm just trying to air my thoughts / get reassurance that I'm not making an unforseen mistake. I know cars depreciate (unless rarely exotic).
I've compared the term of mortgage against the 5 year term of a personal loan, and they work out I'm paying nearly EXACTLY the same interest across the span of the borrowing.
Any general opinions. Maybe I'm doing the maths wrong (well moneysupermarket). hehe Just sounds a bit too easy.
Thanks
:beer:
I'm looking at remortgaging my house to treat myself to a car. I already know this is NOT MSE philosophy, and have debated about not buying it and chipping away at the mortgage. I have approx £65k equity in the house, after devoting near 3 years putting life on hold to rennovate-blood,sweat and tears...not to mention money. I might even have more money in the house as that is comparing to the other houses on the market (at a less price than they are selling for, and mine is way more modern, energy efficient, desirable than them).
The mortgage is low, but not low enough to say pay off in 5 years kind of scenario. I could do 10 years, but it would mean 10 years with no treats, and I'm wanting to find a bit of a balance. I really think I deserve a treat, and I guess I've always been so cautious I'm just looking for reassurance probably (silly I know).
From doing some maths on moneysupermarket. I could remortgage, take out £20k for the car (and some other repairs I wish to do on the house). Comparing the repayment of existing mortgage, and term it works out to be £50 a month more payment on my existing mortgage. If I reduce the term by say an extra 5 years, it means I pay an extra £100 a month.
I've just had a promotion at work, which will equate to a near £150 pay rise per month. So, on paper remortgaging the house seems the best way to buy the car. It would almost be unoticable and I can manage it as I'm a good saver. I know insurance and petrol will go up.
Just wondering if anyone has any opinions upon remortgaging. Surely there's no way a personal loan could be cheaper? I also don't want any alternative cars at the moment (which I've considered). I could buy this one, then sell it in the future to buy a cheaper one. As I say I'm just trying to air my thoughts / get reassurance that I'm not making an unforseen mistake. I know cars depreciate (unless rarely exotic).
I've compared the term of mortgage against the 5 year term of a personal loan, and they work out I'm paying nearly EXACTLY the same interest across the span of the borrowing.
Any general opinions. Maybe I'm doing the maths wrong (well moneysupermarket). hehe Just sounds a bit too easy.
Thanks
:beer: