Mortgage advice 4 constant worrier.

swebber

Hi everyone,

I've found myself in quite a good situation, but because of my upbringing, worry constantly about money. Not to go into depth, but both my parents our retired (divorced) and live on peanuts, as due to rather unfortuante lifes, things have turned out badly. (I help them with shopping etc..)

Anyway, my situation is that myself and hubby will be due to re-mortage for £95K in September and yes I know I'm thinking ahead, but we want to get it payed off early.
We will have £100 or possible £150 per month to use in our task, problem is what kind of Mortgage is best, offset, flexible etc...

What I should also mention, is that we have a loan @ £300pm which finishes in Feb 06 and we want to use that money toward Mortage as well.

I inaitially wanted to take out normal Mortage with shorter term, but then what about the extra £300 in Feb ?

Hope that explains things, would really appreciate help as keep thinking about it and getting more and more confused.

craigb_3

get this question every day!
if you choose offset its only worthwhile in my opinion if you have lump sum to offset against it but rememer you will pay a higher rate for that.
take a daily interest rate mortgage that allows you to overpay regardless of when deal ends.
example ... 95k mortgage for any term that allows you to overpay by 10% per annum of original loan penalty free. so you could pay £9500 p.a free of redemption penalties. £791 per month. This will allow you to get a low rate and still allow you to pay it off early.
What lender are you with right now?

herbiesjp

I agree with mortgageman in that for offsets to be an advantage you would need a large amount of savings to offset to counter the effect of the higher rate you are paying.

If you are looking at regular overpayments then look for schemes that allow this - either limited to 10% or schemes that allow more.

bridiej

Our mortgage is with Nationwide and we can repay up to £500 per month with no fee.

Sure there's probably more out there too.

swebber

Thanks for responses.

We're currently with the West Brom, fixed for two years runs out Sept. I'm not sure of the rate, but it was the best we could get, when we took it out. We went through a Independant broker who we trust, so sure it was good.

Now of course I've found this site, so I'm taking a very active interest in all my finances and of course the Mortage is the biggy so want to get it right.


We don't have any savings that we could use (tied into varouis schemes) so it sounds like a shorter term Mortgage that allows overpayment would be the best.

Phew !!! may finally get a hang of al this stuff eventually. Thanks again for help, any further opinion especially in light of above appreciated.

bridiej

I know what you mean, I always used to be a bit "scared" of anything to do with finance, but these boards help demystify it and give you the confidence to sort things out.!

swebber

Thanks for the support Bridiej.

I'm definately getting there, but I might as well admit, (I've been told I need to be more open about this) I have numerical dyslexia. It has a really stupid long name, but it's easier described as above.
Only just been 100% diagnosed, but luckily it's only mild. I figure the more practise I get, the more I can cope with it.

Oh, everyone will be so proud. I wonder how much of the world I have admitted this too. I know you don't know who I am, but it is a step for me.

Well thanks for helping me feel able and ready to tackle big financial stuff. I expect I will be asking more questions, on probably every board. (he he)

bridiej

No problem, always plenty of people ready to answer questions

herbiesjp

You will get all the support you need on the board so don't be afraid to ask any questions - we are a friendly bunch on here