Help to buy/general finance question.
Discussion
Looking for advice on what to do. Currently got a basic isa with 8k and around 6k in my current account im looking at getting a house end of 2020 beginning of 2021. As the help to buy isa will end later this year the plan is to set one up this months transfer initial deposit over from my current isa and move rest of the money in to something else.
Currently I have a loan on a car of around 9k left which with interest if I keep paying the current instalments will be 12k total. My credit rating isn't brilliant so im in two minds to keep the finance on the car going for another year to help that or pay it of end of year with the money from the isa and current account.
The other option is using that money and putting it in bonds or even shares as current interest rates are rubbish.
I currently got my other car up for sale which should ad 3k and Ive got a track car/trailer/van unit which will more than likely sell which would be around 10k total. Im hoping to get around 30k total with 20k being max deposit and 10k for fees furniture etc houses around me being between 100-130k price.
My current wage is 23k per year which will go up soon as im in process of becoming a mot tester and with further manufacture training im likely to be up around 25k plus bonuses. The only outgoings atm is a unit I rent for the track car and storage and the loan for my car currently live with my parents so have around 600-800 per month disposable income to add on.
My main question is to pay of the car loan as soon as a I can then rebuild that money over the next year and half or use that money in investments/shares/bonds and with added savings to have more savings and pay of the loan which will be at 7k in a year and a half time.
Currently I have a loan on a car of around 9k left which with interest if I keep paying the current instalments will be 12k total. My credit rating isn't brilliant so im in two minds to keep the finance on the car going for another year to help that or pay it of end of year with the money from the isa and current account.
The other option is using that money and putting it in bonds or even shares as current interest rates are rubbish.
I currently got my other car up for sale which should ad 3k and Ive got a track car/trailer/van unit which will more than likely sell which would be around 10k total. Im hoping to get around 30k total with 20k being max deposit and 10k for fees furniture etc houses around me being between 100-130k price.
My current wage is 23k per year which will go up soon as im in process of becoming a mot tester and with further manufacture training im likely to be up around 25k plus bonuses. The only outgoings atm is a unit I rent for the track car and storage and the loan for my car currently live with my parents so have around 600-800 per month disposable income to add on.
My main question is to pay of the car loan as soon as a I can then rebuild that money over the next year and half or use that money in investments/shares/bonds and with added savings to have more savings and pay of the loan which will be at 7k in a year and a half time.
MG CHRIS said:
Looking for advice on what to do. Currently got a basic isa with 8k and around 6k in my current account im looking at getting a house end of 2020 beginning of 2021. As the help to buy isa will end later this year the plan is to set one up this months transfer initial deposit over from my current isa and move rest of the money in to something else.
Currently I have a loan on a car of around 9k left which with interest if I keep paying the current instalments will be 12k total. My credit rating isn't brilliant so im in two minds to keep the finance on the car going for another year to help that or pay it of end of year with the money from the isa and current account.
The other option is using that money and putting it in bonds or even shares as current interest rates are rubbish.
I currently got my other car up for sale which should ad 3k and Ive got a track car/trailer/van unit which will more than likely sell which would be around 10k total. Im hoping to get around 30k total with 20k being max deposit and 10k for fees furniture etc houses around me being between 100-130k price.
My current wage is 23k per year which will go up soon as im in process of becoming a mot tester and with further manufacture training im likely to be up around 25k plus bonuses. The only outgoings atm is a unit I rent for the track car and storage and the loan for my car currently live with my parents so have around 600-800 per month disposable income to add on.
My main question is to pay of the car loan as soon as a I can then rebuild that money over the next year and half or use that money in investments/shares/bonds and with added savings to have more savings and pay of the loan which will be at 7k in a year and a half time.
I'd suggest - pay off the loan and rebuild your savings from there. Throw the extra you were paying on the loan towards rebuilding your savings.Currently I have a loan on a car of around 9k left which with interest if I keep paying the current instalments will be 12k total. My credit rating isn't brilliant so im in two minds to keep the finance on the car going for another year to help that or pay it of end of year with the money from the isa and current account.
The other option is using that money and putting it in bonds or even shares as current interest rates are rubbish.
I currently got my other car up for sale which should ad 3k and Ive got a track car/trailer/van unit which will more than likely sell which would be around 10k total. Im hoping to get around 30k total with 20k being max deposit and 10k for fees furniture etc houses around me being between 100-130k price.
My current wage is 23k per year which will go up soon as im in process of becoming a mot tester and with further manufacture training im likely to be up around 25k plus bonuses. The only outgoings atm is a unit I rent for the track car and storage and the loan for my car currently live with my parents so have around 600-800 per month disposable income to add on.
My main question is to pay of the car loan as soon as a I can then rebuild that money over the next year and half or use that money in investments/shares/bonds and with added savings to have more savings and pay of the loan which will be at 7k in a year and a half time.
It feels nice to be debt free, and you'll be in a great position to save like mad to get the house deposit.
Whats the ARP on the loan? It's unlikely you'll be earning more interest from your savings.
Even though long term savings in equities/bonds can return 7-10% - that's not guaranteed in the shorter term. If you are saving for goals in the next year or two (buy a house) then the risk out-weighs the reward, stick to high interest savings accounts.
Edited by trowelhead on Friday 6th September 16:57
Rate is 4.4% with 4 years left so paying of early is what I was thinking when I took it out. The help to buy isa is 2.2% with £1000 initial deposit and 200 per month Max allowance with a 25% bonus on final amount from the government. So would make sense to pay of loan and that £260 per month I currently pay to go into the isa with £60 spare.
I was just wanting to see if there was any other option out there in the short term over paying off the loan outright.
I was just wanting to see if there was any other option out there in the short term over paying off the loan outright.
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