Interest on repayment mortgage

usignuolo

I have a repayment mortgage with the Alliance and Leicester. On 1 Jan 2008 the interest rate was 7.89%, it has reduced over the last 12 months to 5.84% last month, which still seems high to me. It has 12 years left to run and in theory I am paying back proportionately more capital and less interest but there is still a sizeable interest charge each year. Would I be better off remortgaging? If so, who with? (I asked Barclays where I bank about an Offset mortgage but they said the mortgage has to be over £25,000 (mine is just below) AND linked to an insurance policy which I would have to buy from Barclays. Can anyone suggest a better deal.

getmore4less

If going for the offset you can borrow £25k+ as long as the LTV is ok and just offset what you don't need to redeam the existing mortgage.

Not sure about the insurance policy we don't have one with our offset mortgage from Barclays.

I thought they were not allowed to insist on using their own or any policies