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Lump Sum or Offset Mortgage ???
toppy007
Posts: 7 Forumite
My wife and I recently cashed in a number of endowment policies that we had running for a number of years and we have invested the money in Cash ISAs and savings accounts.
We are currently on a fixed mortgage (5.75%) that is due to finish in September 2009. I know it’s early to be looking but I would appreciate people’s advice on whether we should pay off a lump sum next year (reduce term to 14yeras) and go for another 2/3 year fixed/discounted mortgage or whether to look at an Offset mortgage.
This will be our situation in September 2009:
Savings
– Current account = £56,000
– ISAs = £7,600
Earnings
- Me = £50,000
- My wife = £50,000
- Take home = £5,200
- Balance in current account at the end of the month ~ £700
Mortgage
- £279,000
- Outstanding term - 18 years
- No other loans or other debts
.
We would need to dip into our savings in 4 years time when my first son goes to University to pay for fees and the like. When he finishes my other son will also go to Uni.
We are currently on a fixed mortgage (5.75%) that is due to finish in September 2009. I know it’s early to be looking but I would appreciate people’s advice on whether we should pay off a lump sum next year (reduce term to 14yeras) and go for another 2/3 year fixed/discounted mortgage or whether to look at an Offset mortgage.
This will be our situation in September 2009:
Savings
– Current account = £56,000
– ISAs = £7,600
Earnings
- Me = £50,000
- My wife = £50,000
- Take home = £5,200
- Balance in current account at the end of the month ~ £700
Mortgage
- £279,000
- Outstanding term - 18 years
- No other loans or other debts
.
We would need to dip into our savings in 4 years time when my first son goes to University to pay for fees and the like. When he finishes my other son will also go to Uni.
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