Help, in a quandry over remortgaging

silver4444

My wife and I have a 150k mortgage (split 50k interest only and 100k repayment ) with HSBC on its standard variable rate. Our endowment (worth 50k) is due to pay out in 2014 and we are in the fortunate position of having 60k in savings from the sale of our last house when we downsized. We don't really want to pay all of the savings into the mortgage as we still want to have access to them and "live a little" . My question to you "mortgage gurus" on this board is that we want to remortgage and do not know if we would be better off on a low interest discount rate fixed for e.g.for 2 years or if we would be better off going for an offset mortgage and letting our savings work for us ???
Any advice would be greatly appreciated. Thanks

herbiesjp

You can find pretty competitive discounted, tracker or fixed offset rates for 2 years at a time if you wish - so you could meet both of your requirements if you wish to.

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When we looked at remortgaging last summer I looked into the same options you are.

We came to the conclusion that if you already have your savings in ISAs and high interest accounts there really isn't much difference between an offset mortgage and a discount or fixed mortgage.

I realise this probably doesn't answer your question. We decided to go with a fixed rate as this gave us some security against interest rate rises, and our savings are mostly in ISAs.

silver4444

Thanks for the advice from you both on our remortgage.