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What would you guys do?....

LEWKI
Posts: 121 Forumite
I have spoken with my financial advisor as my 5 year fixed with Nationwide is up. I have moved to 2.5% and my payment is down from £980 ish to £750ish
I was consisering an offset as I have £35k in savings and I might be glad to use this in the near fututre. My advisor has suggested the following to consider:
I also have £5k of "overpayments" against my exiting mortgage
I am 36 with only basic pension provision, but I have 3 small kids so we do need cash to have fun and music lessons etc
What would you do? I thought offset but my interest would increase??? I like btl as it adds to pension provision for 30 years down the road...or...can I overpay my NW mortgage with no penalties?
Thanks for your thoughts
I was consisering an offset as I have £35k in savings and I might be glad to use this in the near fututre. My advisor has suggested the following to consider:
- Buy to let property
- Pension
- Share isa etc
- Off set mortgage
I also have £5k of "overpayments" against my exiting mortgage
I am 36 with only basic pension provision, but I have 3 small kids so we do need cash to have fun and music lessons etc
What would you do? I thought offset but my interest would increase??? I like btl as it adds to pension provision for 30 years down the road...or...can I overpay my NW mortgage with no penalties?
Thanks for your thoughts

0
Comments
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I would hang on to that 2.5% rate for sure.
You can pay money off whenever you like now, without penalty, and you are not tied in anymore... so can remortgage at the drop of a hat if something better comes along.
That SVR is so good, Nationwide are desperate to try and get borrowers off of itI am a Mortgage adviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thanks koexelek
If I overpay today and put all my money into the mortgage it will be £100k flat at 2.5%. If I need to get say £10k back in a hurry, can I draw it down again?
I am sure I could before when I was overpaying? If I can, I maight as well do this asap to save interest and start massively overpaying.
Again thanks for any help0 -
I think you can draw any Nationwide overpayments back at any time.... but check the small print and don't take my word for itI am a Mortgage adviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Just phoned nationwide. Yes I can overpay and get my overpayment back at any point. So thats great news and I will do this in the first instance.
However,..........
I asked what my repayments would be and the lady said £100,000 mortgage at 2.5% over 19years and 11months was £431.61/month...
But when I put 100k at 2.5% over 20 years in the mortgage cal it come up as £529.90. Which is right?
This is a huge difference in payments0 -
Yes I got £529.90 as well. Methinks lady at Nationwide has a dodgy calculatorSpace available for rent0
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As well as the saving how much surplus do you have each month to top this up?
If the money is allready in ISA's then if you want to offset you are best looking at one that allows ISA's to be offset.
I would start filling cash ISA's and moving the money around each year to chase the rates.
BTL do you want to become a landlord?
ovepaing your own mortgage is part of pension planning it frees up future earnings and reduced the cost of shelter.0 -
Peelerfart wrote: »Yes I got £529.90 as well. Methinks lady at Nationwide has a dodgy calculator
Me too, but I'd accept the £431 if the woman guarantees it will still be fully repaid at the end of the term:cool:
I am a Mortgage adviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Keep the 2.5% mortgage and save any surplus at more than 3.125% gross (basic rate taxpayer).
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
Thanks all for your help. I have decided to put all my money against the mortgage and start the savings pot moving again.
Does anyone know if the Nationwide will continue to take my current £750 per month all will they automatically drop to £530?0
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