Sanity check required
Currently looking at remortgaging €112k with another lender at a lower interest rate (current is 4.25%, new would be 3.4%). There’s 12 years left on the mortgage and would be cutting down to 10 locked in for that duration.
Was going to borrow an extra €8k to install solar which will still keep the repayment below what we currently pay (€300 per week). We currently pay €25 per week to both electricity and gas (BG) on a constant all year basis. This means no billshock as credit builds up during summer
Then got to thinking about the car. We have 30 months left on it at €497 and it’s a 2019. Fuel costs an average of €220 per month.
Was considering getting rid of that car, trade in would just eliminate the outstanding loan (€12k), and borrow more to replace it with an EV which would be about 3 years old. This would mean borrowing up to an extra €30k (probably less)
Due to lead times for solar install, predicting that end summer will be the install time, meaning production will be lower for the first 8 months or so of ownership, meaning that feeding back into the grid and earning from it won’t happen in full until then.
If we borrow more money, it will increase the payment by about €80-€100 per week, however we would be eliminating €170 per week approximately. In car related payments thereby saving €70-€90 per week. From solar production next year (April on), I’d expect to reduce or eliminate the weekly payments to BG also saving up to a further €2.6k a year as BG allow you to move funds between gas and electric accounts.
I know the car wouldn’t last the full length of the remaining mortgage term and that’s ok as the next car wouldn’t last be our final one (most likely). I’m also well aware that financing a car on a mortgage would.not be recommended in most cases, this is really a consolidation of outgoings.
Make sense or not?
Currently looking at remortgaging €112k with another lender at a lower interest rate (current is 4.25%, new would be 3.4%). There’s 12 years left on the mortgage and would be cutting down to 10 locked in for that duration.
Was going to borrow an extra €8k to install solar which will still keep the repayment below what we currently pay (€300 per week). We currently pay €25 per week to both electricity and gas (BG) on a constant all year basis. This means no billshock as credit builds up during summer
Then got to thinking about the car. We have 30 months left on it at €497 and it’s a 2019. Fuel costs an average of €220 per month.
Was considering getting rid of that car, trade in would just eliminate the outstanding loan (€12k), and borrow more to replace it with an EV which would be about 3 years old. This would mean borrowing up to an extra €30k (probably less)
Due to lead times for solar install, predicting that end summer will be the install time, meaning production will be lower for the first 8 months or so of ownership, meaning that feeding back into the grid and earning from it won’t happen in full until then.
If we borrow more money, it will increase the payment by about €80-€100 per week, however we would be eliminating €170 per week approximately. In car related payments thereby saving €70-€90 per week. From solar production next year (April on), I’d expect to reduce or eliminate the weekly payments to BG also saving up to a further €2.6k a year as BG allow you to move funds between gas and electric accounts.
I know the car wouldn’t last the full length of the remaining mortgage term and that’s ok as the next car wouldn’t last be our final one (most likely). I’m also well aware that financing a car on a mortgage would.not be recommended in most cases, this is really a consolidation of outgoings.
Make sense or not?