Credit Union Loan

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Chuckles

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Hi...

Got a rate of 8.33% today from my CU for a home improvments loan... Is this rate good or could I get better elsewhere do you think?

Thanks in advance!

Chuckles
 
Mine was for 50k and the repayments are around 270 per fortnight over 10 years. I say around 270 as I haven't the actual documentation here....Note that the repayment is fortnightly.
 
Mortgage rates are much lower than the rates quoted here and are likely to go lower over the next year imo. Is topping up the mortgage/getting a mortgage not an option for Chuckles and maryanne40?
 
Hmmmm....possibly. I didn't feel like the hassle of renegotiating the mortgage in the credit crunch era. Credit union is so simple. Expecting a lump sum in a couple of years time and will clear loan then.
 
Have to say I'd say the same as Demoivre.

If the amount was small I'd say go with with your current option - however E50k over ten years in not an insignificant amount.

Just a quick calculation (not an exact science I know), but assume your current rates and repayments hold then you'll repay c. E71,000 over the ten years.

If you take an equity release (mortgage) over the same period and using a rate of say 5% - you'd repay E63,500.

Against that I acknowledge you don't appear to really be taking a 10 year loan as you intend to pay off in a couple of years time from an expected lump sum, so it may not be worth your while going the mortgage route. Just one point, make sure you opt for a variable rate, or at least a fixed rate of shorter duration than when your expect lump sum.

Best of luck.

BM
 
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