Looking to move - money tied up

rlfan82

After an inheritence, myself and my wife tied up money in investments and bonds.

£60k poppy bond (Expires 31.12.09) -> £65k on expiry
£37 hartford investment (5 year but could withdraw now without losing money, currently worth 41.5k)
4 x ISA's (15,200)


We are looking to move to a 200k house and we have 103k of current mortgage left.

Were trying to figure out the best way to manage our finances so we dont get penalised interest by withdrawing early.

Low deposit mortgage, higher interest rate, keep savings until expired?
or
withdraw savings and invest higher deposit for mortgage




Thanks in advance for any help. going round in circles

dwsjarcmcd

What sort of mortgage do you have now i.e. fixed, capped etc and would you have any redemption charges if you change? Are you going to 'port' you current mortgage?
My inclination would be to port the increased borrowings on your current mortgage onto SVR. When your poppy bond matures, pay it down using that. You don't say when the Hartford investment matures or what it is so much harder to give an opinion.

rlfan82

Just for further information, have spoke to current mortgage provider:

Out of 17k profit made on current house i can lay down 10k as a 5% deposit on nationwide mortgage of 200k.

Then the extra 85k needed on top of current mortgage can be borrowed at...

2 Year fixed (with £99 booking fee)

A: £500 res fee @ 6.68%
B: £896 res fee @ 6.58%
C: £0 res fee @ 7.28%

Basically, 2 mortgages will be rolled into one but with seperate terms and interest rates. Is this correct?


PS. This means all the savings can stay put for time being, just need to decide where the most money can be saved

dwsjarcmcd

rlfan82 wrote: »

Just for further information, have spoke to current mortgage provider:

Out of 17k profit made on current house i can lay down 10k as a 5% deposit on nationwide mortgage of 200k.

Then the extra 85k needed on top of current mortgage can be borrowed at...

2 Year fixed (with £99 booking fee)

A: £500 res fee @ 6.68%
B: £896 res fee @ 6.58%
C: £0 res fee @ 7.28%

Basically, 2 mortgages will be rolled into one but with seperate terms and interest rates. Is this correct?


PS. This means all the savings can stay put for time being, just need to decide where the most money can be saved

Yes, you would have 2 seperate accounts but the mortgage would be paid via one DDM. Just a word of caution, try if at all possible to have the 2 accounts maturing on or around the same tome, this will avoid
- 2 sets of product fees
- being stuck with the Nationwide because you are always in redemption charge period.

If it was me, the determining fact as to whether I used the savings would be the rate on the savings -v- mortgage. You would need to be getting a hell of a rate on your savings (taking into account your tax rate) to make it worthwhile to leave them until maturity, particularly the £65k maturing in December. I think you need to do some sums and not get hung up on exit charges for your savings.

David