Should I keep the mortgage or get a personal loan?

Posted on 31 August 2008

i owe 80000 pounds on our mortgage and we were thinking of borrowing a personal loan of 80000 pounds to pay off the mortgage completely and just have the loan to pay each month. do you think that will work out long term for us? are is it better to remain with a mortgage. we are fixed till 2009 at 437.15 per month. i am currently searching for a loan company who will lend us the the amount with a fixed interest.

 

thank you

 

Thank you for your question. I would be very surprised if you could get a personal loan for £80,000, most lenders will limit it to £25,000 due to FSA (Financial Service Authority) regulations. Also most mortgage interest rates are lower than personal loan rates. You could however look at taking a long term (5/10 years) fixed rate mortgage if getting a fixed rate is important to you.

Why not give one of our experienced brokers a call on 0845 413 1053, they would love to help you with this.
 

Best Wishes

 

 

 

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.