I've a loan for several thousand from my local credit union at 9.9%. I applied for a month off paying my mortgage last Feb. The bank has given me this FEb off paying too (I didn't ask for this).
My mortgage is on a tracker, costs around EUR900 per month and from what I can see it will increase by EUR25 per month if I don't pay this month.
Should I use the money I'd normally spend on the mortgage and put it against the credit union loan or ring up the bank and tell them I want to pay my mortgage next month?
If you have a mortgage with an interest rate of 2% and a Credit Union loan with an interest rate of 9.9%, you should pay off the credit union loan first, when you have a choice.
A €900 repayment of the credit union loan will save you €90 per annum. An additional loan of €900 on your mortgage will cost you €18 per annum. So you will be saving €72 per annum for as long as you would have had the Credit Union loan.
from what I can see it will increase by EUR25 per month if I don't pay this month.
OP states from what he can see his repayment increases by 25 per month if he takes the break, point I was trying to make is if that is the case why would he take a break when it will cost him 8100 over the next 27 years to pay 900 off a credit union loan now.