Mortgage help

loopyloulou_3

I have posted on this subject before, but have more info now!

I am currently coming to the end (at the end of June) of a 5 year fixed interest only mortgage (5.95%) with GMAC. (£864.02 a month at present). I have not been running any endowment etc alongside this though.

I have £174,510.04 O/S as at 31/03/09 and as from 1st July 2009 the interest charged to my account will be 2.60% (down to £378.10 a month:beer:).

Although I am pleased about the reduction in the interest, I am concious that if the interest rates rise, then so will my payments :rolleyes:! I am planning on overpaying/saving £400 a month to chip away at the capital (a lot of chipping away needs to be done!)

I have spoke to my IFAs and GMAC. GMAC are not offering anyone any fixed products at present (there goes my idea of refixing at a lower rate!) :mad: and there is no way I have enough equity to move lender at the moment. My two IFAs guesstimated the value of my property at a worrying £150,000 to £185,000 (quite a wide margin there!!)

Any advice?

Is my money better off/safer overpaying GMAC or in a savings account of some description?

Thanks

Loopy

dimbo61

You will from july be nearly £500 a month better off!
Why dont you save that extra money into a regular saver with HSBC 8% ( if you bank with them ?)£250 a month.
Or the barclays 6% RS ( set up DD/standing order) again
£250 a month or if you can do both !!!
You could also overpay half the money on the mortgage and half on the regular saver, that way if rates start to rise you are already overpaying so you will be overpaying less as the mortgage goes up.
Good Luck

loopyloulou_3

thank you! I have never had the problem of deciding where to put savings before!! LOL
obv I need to get rid of some of the capital - as much as possible! and like the idea of half and half thing, at least then some of it is there, just in case i need it and some of it is off my mortgage.