savings v mortgage ?

highplaindrifter

im in a pickle , not having a huge mortgage (£80k) i could pay £70k off but then i would have no savings , not sure if this makes sense or should i look at an offset deal that includes access to my savings should i need to, i understand these are limited though.
Any advice would be greatly appreciated with if possible any suggestions to the best deals around.

Cheers

CloudCuckooLand

Depends on the interest rates.

If your savings earn more than the mortgage, or if they can be moved into ISAs or Fixed rate bonds to beat the mortgage, then maintain the savings. You will effectively offset 'manually'.

If your mortgage is quite expensive, then subject to Ts&Cs and early repayment charges it may be worth paying some off, out of savings. Maybe £50k, keeping £20k aside for emergencies.

I doubt a remortgage to another lender would be worth the fees/survey etc, involved in such a (relatively) small mortgage.

Maybe check out the options of your current lender, where fees and survey may not apply?

Joe_Bloggs

@highplainsdrifter
Many MSE forum members aspire to be in your position, including myself. There is a mortgage free wannabe section to this forum where you can perhaps seek an inkling to your quandary.
J_B.

highplaindrifter

CloudCuckooLand wrote: »

Depends on the interest rates.

If your savings earn more than the mortgage, or if they can be moved into ISAs or Fixed rate bonds to beat the mortgage, then maintain the savings. You will effectively offset 'manually'.

If your mortgage is quite expensive, then subject to Ts&Cs and early repayment charges it may be worth paying some off, out of savings. Maybe £50k, keeping £20k aside for emergencies.

I doubt a remortgage to another lender would be worth the fees/survey etc, involved in such a (relatively) small mortgage.

Maybe check out the options of your current lender, where fees and survey may not apply?

Many thanks , i do like the prospect of not paying interest on my savings balance though , especially as it earns near nowt in a savings account at the moment , the interest saved will help reduce my mortgage balance of course.

Let_Us_See

There are some very competitive offset rates available and you would still maintain full control and access to your savings. With rates on savings so low I suspect your £70k fund is basically doing nothing and I would consider maximising your cash ISA allowance and offsetting the balance.