Reduce Term or Monthly Sum? General Advice Please

whiskywhisky

pawlala - thanks. Out of interest why did you keep a £50 mortgage - was it so they store the deeds?

pawlala

The deeds are electronic, so there's nothing to store. I kept it open to avoid paying the exit admin fee - and also to avoid wasting time with a new product when remortgaging (although I've not done this yet, whether keeping the previous product open makes any difference I don't know)

Andrew_Wilson12345

Good evening from a newcomer to this site also looking for overpayment advice.

We currently owe 82K on our mortgage with 14 years left to run. Its a simple ING repayment mortgage taken out 3 years ago pre- financial meldown, no fees whatever and believe it or not our interest rate is 1.39% variable. There are no fees associated with early redemption or paying off a lumpsum. For the lifetime of the mortgage the rate will never be more than 0.75% above Bank of England base rate.

We could pay a lumpsum of 30K off the mortgage. Are we better off leaving this money in a decent interest paying savings account (State Bank of India year 1 - 2.25% but rising to year 5 -4.75%) or paying off the lumpsum. Any comments very welcome.