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What are our best options?
Sarahjovi
Posts: 1,017 Forumite
Hi,
After seeing MSE Martin on the TV this morning talking about fixing mortgages, it got me thinking about our mortgage and what would be the best thing to do...
Our current fixed rate is due to end in January and we will have 10 years left on a repayment mortage with a balance of about £38,000. We also have an unrelated endowment policy which is due to mature in 5 years at around £35000.
Should we... Fix the rate again at the best option available and carry on as we have done, for the 10 years or
Carry on for 5 years and then find out our best options then i.e pay off the balance with the endowment pay off.
Or ask the bank (Currently Barclays) for a remortgage for paying the mortgage off in 5 years with the endowment..
We nearly fixed the mortgage last time (2 years ago) at 4.9% for 10 years, but didn't have the £700 fee. I have just looked at Barclays website and currently they are asking £995:mad: to fix the rate.
Martin was saying you can book a rate for about £80 3 months in advance so we are a bit early to do that!
Thanks for any advice!
Sarah:D
After seeing MSE Martin on the TV this morning talking about fixing mortgages, it got me thinking about our mortgage and what would be the best thing to do...
Our current fixed rate is due to end in January and we will have 10 years left on a repayment mortage with a balance of about £38,000. We also have an unrelated endowment policy which is due to mature in 5 years at around £35000.
Should we... Fix the rate again at the best option available and carry on as we have done, for the 10 years or
Carry on for 5 years and then find out our best options then i.e pay off the balance with the endowment pay off.
Or ask the bank (Currently Barclays) for a remortgage for paying the mortgage off in 5 years with the endowment..
We nearly fixed the mortgage last time (2 years ago) at 4.9% for 10 years, but didn't have the £700 fee. I have just looked at Barclays website and currently they are asking £995:mad: to fix the rate.
Martin was saying you can book a rate for about £80 3 months in advance so we are a bit early to do that!
Thanks for any advice!
Sarah:D
0
Comments
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i would fix the mortgage until the endowment maturity then pay it off with the proceeds of the endowment as this should leave you with little or no mortgage depending on the investment returnsI like to give people as many choices as possible to do what I want them to. (Milton H Erickson I think)0
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Hi
You would be better off with fix rate for 5 years than 10 as normally with fixed deals you are tie in for the fixed period and if you pay off the mortgage before the tie in period comes to an end you would have to pay early redemption charges.
Cheers
GoncaloI am Mortgage Adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
5year fix on interest only and start filling the ISAs if not allready doing so.
Monitor the endowment and overpay if not on target to pay off the loan.0 -
5 year fix on repayment and start filling the ISA,s as well
Keep the term at 10 years and you are reducing your monthly payment.
check if you can overpay each month and then compare rate you get from your ISA TAX free to interest you save by overpaying TAX free.
Check on here if endowment is worth keeping ( or cash in and pay off mortgage at end of fix in january)
You need to post details of endowment0
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