offset, repay or invest?

Susan_B_3

anyone got any advise on the best thing to do? I am about to realise £85,000 through the sale of property and have £120,000 mortgage outstanding on the home I own with my husband. (interest only)

The priority for me right now is to keep payments on my mortgage down as I am about to take a career break to look after my son - what would be the best thing to do; use the £85,000 to repay? offest the £85,000? or invest the £85,000 and use the interest to make payments on the mortgage?

thaylock

Offset, I have an an account with https://www.oneaccount.com & it is excellent, works very well for people with substantial savings.

Susan_B_3

ok - had a peek at the one account and the repayment amount on the calculator looks attractively low .. but... is it worth while even if I my circumstances change and I decide I want to buy a bigger home and increase my mortgage amount? i may wish to do this in a year or so. still worth off setting?

Fairdo_2

Absolutely.

If you are taking a career break, you have the money to call upon if you really need it, as you don't have to go cap in hand each time you need to draw down any money.

If you are considering getting a bigger mortgage on a bigger property in a years time, I assume you will do this because your circumstances have changed again by restarting your career.

If you want to buy again, you would have to prove affordability again anyway.

Fairdo_2

As an addition to this, the likes of The One Account would take a more favourible approach to an existing client if they wanted to borrow a bit more anyway.

thaylock

I don't think you will have any problems increasing your 'facility' as the one account call it. I think they let you borrow 3.5 times your income so as long as you are within that they can increase your 'facility' quite quickly. Ask them for an information pack, I have found them to be very efficient & helpful whenever I have spoken to them, I am currently saving hundreds of pounds in interest per months, & the best thing is I have not bloody tax to pay to the tax man on my savings. To get the sort of return I am getting from the One Account would mean finding a savings account that paid 9.5% interest.