Should I stay or should I go?

gillybean129

We have had an offset mortgage with the Woolwich and despite reading some bad postings on here it's worked for us so far.

We are what I'd consider low income so though the figures don't seem much they are to us!

We now owe around £19K and have savings of roughly the same amount we chose not to pay this off tempting though it is and have decided to extend the house at long last and will spend roughly £33K on this in total.

So....we intend using £15 of our savings and increasing the mortgage to cover the rest, leaving us with a mortgage of around £35K. The interest rate with the offset is now 6% and we'll be charged £150 to increase.

I am wondering if we should we opt to move to a different product now that we have little savings to work for us, I am told there's a £275 exit fee (though I could get that back ) The rates at the moment don't seem that competitive and as the term is for 10 years and I'd like to keep it that way if we can afford it.

Are we doing the right thing given that the mortgage is comparatively low (some are min £50K) and a set up fee might be £500 which would take us a long time to recoup.

Any advice welcome to a newbie, Thanks