Advice on the type of mortgage to go for...

vn108

Well here's our currently situation:


We are currently on a fixed rate deal @ 6.1% on a £103k mortgage. This is coming to an end at the end of September. We have a lump sum of £32k, which we hope to increase to £40k by the end of September. We will also have the availability of overpaying by approx £1600 each month and want to stick with the current monthly payment of £999.
(With the figures above and if I’ve done my sums correctly, we should be able to pay off in approx 2.5 years)

As I see it we have 3 options:

- go onto another fixed rate for 2 years, save each months overpayment and pay off in one lump sum at end when early repayment charges end

- go on to the SVR and overpay as much as possible

- go onto an offset put all overpayments into offset


Now our main aim to pay it off asap. So looking at what interest rates maybe in a years time, my currently direction is towards the fixed rate deal.


Any opinions/advice will be gladly welcomed…:beer:

vn108

anyone?

dimbo61

3 year offset fixed with YBS at 4.39%
Only my opinion and not advice
Low fees to set up £245 and you can save into offset accounts which you can then use to clear the mortgage at the end of the 3 years OR drip feed into other investments like regular savers and ISA,s
GOOD LUCK

vn108

Agreed I was thinking of that route, as this would probably be the cheapest in terms of the amount of interest we would have to pay.
However, I was under the impression that you needed 60% of the loan for the offset to be worth having?