remortgage

WILSON

I have a £37,000 mortgage and im currently on the variable interest only mortgage with the woolwich,im now looking for a fixed rate mortgage and im not sure whether to cash in my endowment which is about £20,000 or up my mortgage from £175pm to £600 pm to pay it off(interest and capital) by going with the fixed rate with hsbc? My dilema is its a lot more per month and u never know whats going to happen in the future work wise! Any advice would be appreciated! Thanx :-)

kingstreet

Leave the term as it is and make voluntary overpayments to reduce the term. Then, if times get tough, you can return to the lower contractual monthly payment.

Upto you what to do with the endowment.

WILSON

thanks kingstreet,i have considered that,but still unsure which way to go,still scratching my head,thanks for the quick reply

Morgage_Confused

what is your current variable rate with the woolwich?

dimbo61

many lenders have a minimum loan amount usually £20/25K so if you cash in the endowment and pay a lump sum off the mortgage you will only have £17K
Now you could look at an offset mortgage and put the cash from the sale of the endowment into the offset account.
If you did this you would have a large savings pot to cover part of the mortgage payment each month while offseting the rest of the savings

WILSON

thanks for that dimbo61,i wasnt aware of the minimum(25/20,000) cut off.so i should set up an offset mortgage for 37000 and then add 20000 endowment money bringing it down to 17000.by doing it in this particular order i will bypass the minimum amount threshold,is that right,many thanks for your help,james..

WILSON

my current variable with the woolwich is 3.99%,which looking around is quite high in comparison with others,thanks confused

dimbo61

Your first port of call should be the woolwich as they may have cheaper deals for you to move too without the costs of remortgaging to a new lender.
You could cash in the endowment and pay that off the mortgage and then see what deals the Woolwich has !
I would continue to pay as much as you can afford to clear the mortgage early

WILSON

thanks again dimbo61,i feel a long chat/interview coming on wiyh the woolwich