(08-04-2012 10:05pm)smayo Wrote: It is an odd feeling, borrowing against your mortage for short term lending, and for a lot of people still completely unheard of.
It mostly comes from the likes of Virgins One Account, offset mortgages, or where you are allowed to borrow back any overpayments.
It is a VERY cheap way of borrowing, as long as you are disciplined in paying back the extra borrowing as quickly as possible.
I have such a mortgage and in my example I had 50% deposit on the 40K purchase price. We could have bought the car outright dipping into the overpayments on our mortgage but instead decided it was better keeping the money in the bank (mortgage) keeping the better daily interest rates deducting the mortgage and paying a monthly loan figure over 3 years for the Evoque. Worked out the long term was better keeping all money paying our mortgage in the shortest amount of time as opposed to paying for it in full using more funds. We are quite frugal and don’t have any credit card or loan debt and our other car is paid for and is very cheap to own and run as a second car.
Payment options
