High fixed rate mortgage - help required

MrNGC

I'm currently on an unattractive 2 year fixed rate mortgage of 6.58% on an interest only basis. LTV at the time of taking out the mortgage in October 2008 was 85% so I suspect we would now be closer to 90%.

Annoying as it is to see interest rates drop through the floor in recent months, I took the decision to fix as we were pushing ourselves on the house purchase with the intention of never having to move again (this is still the intention) and did not want to gamble with interest rates. Financially things will also improve for us in the longer term when the kids are out of nursery.

I'm due to get promoted soon and am keen to pay off some capital on our mortgage. I could either switch to a repayment mortgage which will put approx £200 per month onto our mortgage or I am thinking that I could stay on interest only and make some overpayments on the capital amount of our mortgage (if indeed you are permitted to do this).

Clearly given our high LTV there is no saving to be made in switching mortgage provider.

Would welcome people's thoughts on this.

barnaby-bear

MrNGC wrote: »

I'm currently on an unattractive 2 year fixed rate mortgage of 6.58% on an interest only basis. LTV at the time of taking out the mortgage in October 2008 was 85% so I suspect we would now be closer to 90%.

Annoying as it is to see interest rates drop through the floor in recent months, I took the decision to fix as we were pushing ourselves on the house purchase with the intention of never having to move again (this is still the intention) and did not want to gamble with interest rates. Financially things will also improve for us in the longer term when the kids are out of nursery.

I'm due to get promoted soon and am keen to pay off some capital on our mortgage. I could either switch to a repayment mortgage which will put approx £200 per month onto our mortgage or I am thinking that I could stay on interest only and make some overpayments on the capital amount of our mortgage (if indeed you are permitted to do this).

Clearly given our high LTV there is no saving to be made in switching mortgage provider.

Would welcome people's thoughts on this.

Woolwich allow a linked offset savings account - anything like that available with your mortgage? Still have access to the "savings" http://www.woolwich.co.uk/mortgages/offset-mortgages.html