I'm currently serving in Afghanistan. I sold my car before I left. The personal loan for that car will have £5000 left on the balance when I return. I have £5000 from my car sale in an ISA. I will have about £15000 when I return "including" this £5k in my ISA. I want to purchase another car priced at roughly £11-12k max and Id like to save £5k to start building my deposit for a mortgage. Yes, I could use ALL the money for a deposit but at present, my credit and income are, in my opinion, not yet in a suitable position to maintain something like that. In 2yrs time...it will be. So, back to the plan; do I:
A) Pay off my current loan in full and seek a new one for the total cost of the car ?
B) Get a top up of about £6000 on my current loan (who knows, the APR might even drop) and use a further £6000 of my savings?
C) Any other suggestions?
I appreciate you taking a look at this.