mortgage advice needed please

loisamelia

Hi there
We have a lifetime tracker with the woolwich of 0.18% above BofE base rate so our mortgage payments now stand at £77 per month
We have an interest only mortgage with an endowment that was meant to cover the first £33000, which it obviously wont. since we took the endowment we borrowed another £23000 to move house and havent got anything in place to cover that bit of the borrowing.
My question is should I switch to a repayment mortgage now we can afford one, the repayments would be roughly the same as our mortgage was a year ago and we can keep the same deal. However we wont be able to go back to an interest only mortgage in the future
Or should I do as we are now and pay off around £200 extra a month off the mortgage
Or should I get a savings account and save the money I would have paid off the mortgage and earn a bit of interest? Would the interest I earn on the savings make it worth doing that
Thanks in advance
Lois

dimbo61

If allowed I would carry on overpaying the mortgage each month by as much as you can afford.
If you can try and fill a cash ISA ( £3600 each ) as you should be able to get more than the 1.68% you are paying on your mortgage AT THE MOMENT !
OVERPAYING by £500 a month would clear your mortgage in 9 years.
GOOD LUCK

Robert_Sterling_3

Overpay your mortgage if this is allowed.

koexelek

Robert_Sterling wrote: »

Overpay your mortgage if this is allowed.

Most Woolwich mortgage allow you to overpay 10% per annum, but best to check the terms of the offer to make 100% certain

Trying_to_be_good

I'm on this deal - no limit on overpayments if it's exactly the same.

I'd keep doing exactly what you're doing, so you retain the flexibility to lower your overpayments should/when rates go up. Overpay by as much as you can at this stage, but ensure you have emergency savings to fall back on (3-6-9 months of expenditure is recommended).

loisamelia

Thanks all!
I will carry on as we are and get an ISA next year when I will be a tax payer :-)