pay your mortgage or offset your mortgage?

sasik

currently we have a repayment mortgage of 90,000 for 25 years. We have just received large sum of money from our family, when I say large sum I mean just enough to repay all of our mortgage if we choose to do so.
I would like to know what will be the best thing to do, shall we pay the whole loan back or will it be better to have an Off set Mortgage.

I should mention that we have our house on the market at the moment. I don't know if that is relevent or not.

Thanks

CKhalvashi

sasik wrote: »

currently we have a repayment mortgage of 90,000 for 25 years. We have just received large sum of money from our family, when I say large sum I mean just enough to repay all of our mortgage if we choose to do so.
I would like to know what will be the best thing to do, shall we pay the whole loan back or will it be better to have an Off set Mortgage.

I should mention that we have our house on the market at the moment. I don't know if that is relevent or not.

Thanks

No, it’s not relevant, however gut instinct would tell me to offset, as you have access to the cash, but aren’t paying interest on the loan.

Another option (I’m MF since moving house, but we’ve done this in the past) was to save at 4.5% instant access, whilst paying 2.29% (I think at its lowest) on the mortgage (both were with HSBC, but no os mort).

I don’t know what’s out there savings/mortgage-wise at the moment, but give the second of those a go before anything, if not, consider offset.

getmore4less

House on the market is very relevent.

What's the plan if it sells?

No point in setting up a new mortage to just have to set up another one if you move.

whats rate is the current mortgage
Is it portable.

Any other savings
Are you using ISA
Surpus income
Any planned expences
Kids