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Overpayment/cash advance mortgage question/Nwide
golly99
Posts: 454 Forumite
Hi
To have some work done almost 3 years ago we took out an additional cash advance from Nationwide (like a 2nd mortgage) for £15k. This is at 5.14% fixed and as I've been overpaying, there is approx £6k left. As the 3 yr term is coming to the end in around May/June and will then drop to the SVR which will hopefully still be 2.5% . My question is would it be worth getting the overpayments back and then paying off again (at 2.5% instead of 5.14%), or maybe putting it towards the main mortgage of approx 90k at 5.44 fix with around 3 years left e.g. overpay £500 max every month). Before I thought of this I was considering just overpaying on my main mortgage again instead of the £6k as it will be at such a low rate.
Thoughts?
Thanks!
To have some work done almost 3 years ago we took out an additional cash advance from Nationwide (like a 2nd mortgage) for £15k. This is at 5.14% fixed and as I've been overpaying, there is approx £6k left. As the 3 yr term is coming to the end in around May/June and will then drop to the SVR which will hopefully still be 2.5% . My question is would it be worth getting the overpayments back and then paying off again (at 2.5% instead of 5.14%), or maybe putting it towards the main mortgage of approx 90k at 5.44 fix with around 3 years left e.g. overpay £500 max every month). Before I thought of this I was considering just overpaying on my main mortgage again instead of the £6k as it will be at such a low rate.
Thoughts?
Thanks! 0
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