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you’re right about the term being longer but you can surely just overpay on the mortgage so it’s paid off in the term you want?
I.e. unless you’re banned from overpaying on your mortgage, then borrowing under that with lower % will still be better as you effectively choose the term over which to repay anyway
andyfallsoff-
I.e. unless
That's sort of the point. It depends on your mortgage terms. Depends on whether borrowing more changes your rate. Depends on etc. etc.
That's why it's such a pain to compare mortgages without software because there are always a whole load of costs and variables.
On the unsecured personal loan side £20k/7yrs @2.7% is achievable. That's basically what our previous mortgage rate was and iirc we had a chunky penalty for ending our mortgage.
Tl;Dr if gillies wants to borrow money they should look at all options in detail.
hugo7
Can't really help except to say make sure you look at the numbers.
Your rate will be lower than a normal loan but don't forget the term is much longer. So worth checking what a normal unsecured loan from a bank will be vs adding to your mortgage actually works out as over the borrowed period.