Interest Only Mortgage Help for single mum Please

allie1965

I currently have an interest only mortgage (owe £79,000) at a rate of 3.39%. overal length left to run = 17 years, deal runs out in November 2015. I have been on interest only now for 2 years, having paid £15,000 over that time so original mortgage was £93,000. I am able to save around £12K per year at least for the next 2 years and 6 months. What is the best thing to do, I know it is probably to pay off the mortgage but Santander will only allow me to pay 10% per year, what is the best thing to do with the rest (used up my ISA for this year 2012/2013 and will look to set up another one for 2013/2014. Should I do a little for both ?

What would be the risk of using capital from my house (value £215,000) and put down a deposit for another house to rent out? Just so unsure what to do. Can anyone advise please - my income is the only one in my house by the way.

Let_Us_See

I think you need to re-work your figures and options. If you can save approx £12,000 in 2.5 years (average £4800 pa), why not make the annual additional 10% capital repayment? £4,800 is well within the permitted allowance?

Do you require a BTL property? Is this a specific financial plan or just a whim? With only one income it maybe best to have some savings put away for a rainy day!

Thrugelmir

Do you contribute to a pension?

Considered a Stocks and Shares ISA?

Put savings into your partners name? As non taxpayer can earn interest gross. So tax could be reclaimed.

opinions4u

Is being a single mum relevant?

HappyMJ

A buy to let property is risky. Property prices are unlikely to increase by much.

I'd just save it in a savings account......then in 2015 pay it off the mortgage.