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Mortgage help please :-)

Hi all, hoping for some advice if possible. I currently have a mortgage of £90,000 that comes out of a fixed term in sept and I will have 16 years left on the mortgage. When I bought the house 9 years ago it was on a 75/25 scheme with 25% on a no interest 10 year loan. I now have 1 year left before I have to add approx £33k back onto my mortgage and have a couple of ways to help myself but I'm not sure which way would be most efficient? I currently have £8k in savings that I could pay straight off my mortgage and then overpay monthly (approx £300) to the 10% cap then add the whole £33k on next year or just overpay by £300 a month for the whole year and pay the £8k off the £33k and add £25k to the mortgage next year?? I hope that makes sense and I appreciate anybody that takes the time to read this.
Regards
Chris

Comments

  • RickyC_IFSWP
    RickyC_IFSWP Posts: 203 Forumite
    Your post isn't 100% clear, but unless I'm missing something, it appears that both options are identical? You'll still owe the same amount...
    "If you will change, everything will change for you." - Jim Rohn

    I simply use these forums to share my knowledge, reinforce my learning and experience as an IFA. Please remember, if your circumstances are complex, speak with your local IFA from Unbiased or VouchedFor directories for regulated financial advice.
  • themull1
    themull1 Posts: 4,299 Forumite
    When you add the 33k back on to your mortgage, will it be at the same rate as your mortgage?
  • mrginge
    mrginge Posts: 4,843 Forumite
    Do you have sufficient equity to borrow an additional 33k?
This discussion has been closed.
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