Mortgage, Car Loan, ISA

[K77 CTR]

After a little bit of advice,

Sarnie has got me a great deal on my mortgage (fingers crossed it all goes through without any problems) I now have an extra £200 per month that I can survive without.

Do I overpay on my mortgage (which is 2.?% Sarnie please don't shout at me for not knowing what my interest rate is!!) overpay my car loan (at approx 5.9%) or pay into my ISA at 2.15%

I'm guessing I'm best off overpaying the car loan but my dad says mortgage, any advice??

[thekingisdead]

Assuming you already have a rainy day fund built up, I'd overpay the car loan first.

[K77 CTR]

thekingisdead said:

Assuming you already have a rainy day fund built up, I'd overpay the car loan first.

Yep rainy day fund already in place but always happy to have more

[New POD]

Does you computer have excel ?

I'd put the figures into a spreadsheet, over the length of the remaining car loan, and do some comparisons.

BUT :

Clearly the % on the car loan makes it obvious that you'd pay that off first

[Sarnie]

K77 CTR said:

After a little bit of advice,

Sarnie has got me a great deal on my mortgage (fingers crossed it all goes through without any problems) I now have an extra £200 per month that I can survive without.

Do I overpay on my mortgage (which is 2.?% Sarnie please don't shout at me for not knowing what my interest rate is!!) overpay my car loan (at approx 5.9%) or pay into my ISA at 2.15%

I'm guessing I'm best off overpaying the car loan but my dad says mortgage, any advice??

Haha!

A debt at 5.9% is higher than your mortgage rate so overpay this first, especially as a short term debt the monthly payment will be high. Therefore once that is paid this will free up another significant amount of money to be able to plunder the mortgage. If your loan was say £200, then once this is gone you will have £400 a month to over pay the mortgage!

I expect your LTV to be 50% when your product expires

[K77 CTR]

Sarnie said:

I expect your LTV to be 50% when your product expires

If you want me to overpay my car loan, there's NO chance of that, as the car loan still has a good two years to run

[no effort]

Did you look into increasing your mortgage to pay off your car loan and then use what would have been the loan repayment money to pay off your mortgage?

I also when remortgaging try and kept the repayments the same but reduce the term time.

[K77 CTR]

no effort said:

Did you look into increasing your mortgage to pay off your car loan and then use what would have been the loan repayment money to pay off your mortgage?

I also when remortgaging try and kept the repayments the same but reduce the term time.

Hadn't thought of that but I like to have the option to keep some money back if I have any unexpected costs

[Sarnie]

K77 CTR said:

Hadn't thought of that but I like to have the option to keep some money back if I have any unexpected costs

The LTV of the product chosen wouldn't have allowed the extra borrowing

[K77 CTR]

Sarnie said:

The LTV of the product chosen wouldn't have allowed the extra borrowing

Sarnie, always around to keep reality in check

[hbzboy]

Sarnie. Do you deal with UK mortgages for overseas purchases?