Best way to pay a debt

K

Keelie

New Member
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I need to pay 40,000 to ex, what is cheapest way to do this? Remortgage house or get loan from credit union?
 
Credit Union loans are 7-10%, but some are now giving out mortgages, it’ll depend on where you are based.
A mortgage would be cheaper, but you will incur some costs setting it up and there will be less flexibility repaying it.

Of course, everything is dependent on your ability to pay it back.
 
If a mortgage is over a long period of time your might not win on the high interest with the credit union.

Clearly a mortgage is cheaper, but they won't give out a short term mortgage, the best way to do it is take a long term mortgage, at a low rate, adn pay it back faster.

Would your ex accept monthly payments? If you offered him extra - as in interest.

I presume the title to the house has been transferred to you and you have a legal document from him stating he has no longer has any legal or financial interest in it.
 
DannyO said:
A mortgage would be cheaper, but you will incur some costs setting it up
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I presume you mean legal costs?
DannyO said:
and there will be less flexibility repaying it.
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Not necessarily and certainly not if it's a variable rate loan.

But you will probably also need mortgage protection life insurance for a mortgage on your PPR and this is another additional cost.

If you do borrow then make sure to look at the headline interest rate, the term over which you'll repay the loan, the monthly repayment, the total cost of credit assuming that the loan runs full term and isn't repaid early, and any additional costs that may apply (see above).

As @Gordon Gekko suggests above, if you can pay the €40k to your ex in installments then that would be the cheapest as it would involve zero interest costs/charges.

If this is part of a separation/divorce settlement then you should talk to your solicitor about it.
 
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