What should I do

shanevo6

Hi everyone, my first post.
I have just sold a rented out property as my family were due their share of it. My question is I now have an £80000 mortgage & £80000 lump sum which at the moment is tucked into A&L's 5.64% saver. I don't want to pay off the mortgage as I want to keep the money available to me as I may want to buy another property. Should I move it to an offset mortgage, as at the moment the interest on the savings is obviously falling short of the mortgage (4.99%) payments by approx £1500. The redemption penalty is 3% on outstanding balance.
Any suggestions?
Rgds
Shane

thesaint

Hi,
If I were in your position, I would remortgage with a lender that will let you make unlimited overpayments that you can always have access to.
Nationwide is one that comes to mind. It takes a week or two to get them to send the cheque back once requested, but you have the best of both worlds.

Coupon-mad

I would say an offset mortgage is suitable. This is what we did when we had some money from an inheritance, at least it then cancels out your mortgage payment and you can get access to your money anytime.

Check the t&cs of your chosen offset mortgage though, to make sure it suits your purpose.

shanevo6

Many Thanks

Shane