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overpay fixed rate offset morgage with lower rate loan?
domuhe
Posts: 7 Forumite
Hi,
we have a 5yr fixed offset mortgage which allows us to overpay as much as we want (as long there is still a mortgage outstanding until the end of the morgage term).
We recently got a letter from our mortgage provider in which they offered us to take out further money at a quite reduced interest rate, e.g. for home improvements etc.
We have actually no plans to do that, but I was wondering, could we not take out a lump sum at the reduced interest and overpay our normal rate mortage?
I tried to find out whether there are any stipulations regarding whether any overpayments would go against the additional loan or the original loan.
Has anyone looked into this matter before and has some thoughts on this?
Thanks!
we have a 5yr fixed offset mortgage which allows us to overpay as much as we want (as long there is still a mortgage outstanding until the end of the morgage term).
We recently got a letter from our mortgage provider in which they offered us to take out further money at a quite reduced interest rate, e.g. for home improvements etc.
We have actually no plans to do that, but I was wondering, could we not take out a lump sum at the reduced interest and overpay our normal rate mortage?
I tried to find out whether there are any stipulations regarding whether any overpayments would go against the additional loan or the original loan.
Has anyone looked into this matter before and has some thoughts on this?
Thanks!
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