what type of mortgage next?

Pinklepurr

We will need to remortgage later this year so we are now starting to consider what type of mortgage to go for. For the last 8 years we have had fixed rate repayment mortgages but have recently felt restricted by the fact we can only over pay 10% of the balance per year. We are fortunate to have savings and a relatively low mortgage. Here are the figures:

house value - approx 260k
Mortgage - 65k
savings - 25k (mostly held in ISA's)
Current mortgage rate 5.35%

Ideally we would like to have a greater degree of flexibility with regards to overpayments with a view to repaying earlier. Whilst we have no current plans to move we can't rule it out in the future so something which is also portable would be ideal. DH also gets an annual bonus so assuming this trend continues our savings pot will increase over time.

Also, I have seen that some mortgage companies have a minimum loan amount. Usually 40-50k. Is this a widespread thing? Just wondered whether there was any point on reducing the amount we need to borrow before remortgaging.

can anyone suggest a lender or type of mortgage which would suit our needs. we are both employed in permanent jobs. Thanks!

Thrugelmir

First Direct or HSBC would offer the best rates currently. Though restrict amount that can be overpaid. So potentially when you remortgage then is the time to reduce your mortgage with a lump sum.

Overpayment restrictions are lax at the moment. Maybe worth giving your lender a call as some are even allowing unlimited overpayments during 2011. All depends who your lender is and their requirement to reduce their mortgage lending books.

dimbo61

Have a look at offset mortgages first direct or ybs