Mortgage deal end query

caut_1

Hi All

We are near the end of our 2 year fix (5.88) with Nationwide, our Mortgage now transfers to the Nationwide Base Mortgage rate (currently 2.5%)

Obviously this now means that our repayments fall quite considerably (around £300), should we continue to pay the current amount we are paying, therefore making £300 overpayment every month, or should we save the £300. We are looking to move house in the next 18-24 months so thought the extra 300 could be saved as an extra deposit on the next house?

However we are not really sure how to proceed

mortgage_adviser_2

Or you could go 50/50

this is what I would pay down the mortgage and save some.

TonyMMM

If you pay off the £300 a month , you will be "earning" 2.5% net interest on that amount. If you can get a better rate in a savings account then saving makes sense .... I like the 50/50 idea.

Karma4All

I have nationwide @ 2.5%
You should be able to make overpayments, then take that money back out later.
If it's £300 a month, I'd get an A&L Permier & get 7%, with £50 referal @ TopCashBack.
Even if your a higher rate tax payer you'd still be better off.
Also refer anyone else in your household for extra £50 a go.