Tradefair & Financials
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I have a mortgage with about 18 years left.
My current rate is 1.25% (variable at 0.75% above base rate for the length of the loan)
I have the cash to pay off the mortgage in various savings paying about 3.5%
If I approached them about paying off the loan, can I push for them to offer me some sort of deal, and if so, what sort of saving should I ask for?
In effect, the banks are paying me to borrow their money. Surely they would like to come to some sort of agreement with this 'toxic loan'. If I paid them back they could lend it out to someone at 5% or so instead of paying me!!
My current rate is 1.25% (variable at 0.75% above base rate for the length of the loan)
I have the cash to pay off the mortgage in various savings paying about 3.5%
If I approached them about paying off the loan, can I push for them to offer me some sort of deal, and if so, what sort of saving should I ask for?
In effect, the banks are paying me to borrow their money. Surely they would like to come to some sort of agreement with this 'toxic loan'. If I paid them back they could lend it out to someone at 5% or so instead of paying me!!
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seems like a no brainer to me.
your paying 1.25 and receiving 3.5 less tax? Grab a calculator and do the math.
Further, with cash yu have the flexibility to do a yu wish in the future.Presuming you dont act recklessly why not mantain said flexibility?
If you pay off the loan and at some point in the future decide you want to buy something big, you will have to re borrow at the 5%.
your paying 1.25 and receiving 3.5 less tax? Grab a calculator and do the math.
Further, with cash yu have the flexibility to do a yu wish in the future.Presuming you dont act recklessly why not mantain said flexibility?
If you pay off the loan and at some point in the future decide you want to buy something big, you will have to re borrow at the 5%.
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