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Credit Union loan

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  • 28-02-2020 5:24pm
    #1
    tomrob
    Registered Users Posts: 43 ✭


    Looking for a bit of advice.I have a credit union loan for 40000 euro taken out for 10 years costing me 500 euro a month for home improvements have 13 months paid on it . I have no mortgage on my house which would be valued at approx 300000 euro . Would I be better remortgaging my house with a bank would my repayments work out cheaper in the long run .I know credit union interest rate is high but it was the fastest way I could get the money when I needed it .??


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    #2
    dotsman
    Registered Users Posts: 3,635 ✭✭✭dotsman


    Short answer is, yes, absolutely, the interest on a mortgage would be far cheaper and save you significant money. Just a quick go at the AIB online mortgage calculator indicates you would only be paying €388 per month with them. That's €112 per month in your pocket (or stick with the €500 per month and get it paid off earlier)

    However, as it is a very small mortgage, the legal costs will eat in to that saving in a far bigger way. However, you would still save a significant chunk of cash over the life of the loan.

    However you should not that some banks may not be too bothered with a 40K mortgage (very little in it for them), but you should be fine.


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