Here I go again!!

FEE_100

Just coming to the end of a 2 yr deal in oct with chelt & glouc and we are unsure of what to do.
Our situation is this, 30k left to pay on the mortgage and 10k in savings.
We would like to pay off our mortgage quickly but are unsure what to do, should we put the 10k of savings towards the mortgage to make it cheaper to pay off, or just continue with the 30k, we can afford to pay 1k per month to a mortgage and are currently paying 500per month to the mortgage and 500 per month into an ISA so we know 1k if affordable for a couple of yrs.
Also is it worth changing lenders for just a 2 or 3 yr deal, last time we changed it cost us about £1000 and I though it was a bit of a waste of money for a small difference so that`s kinda put me off.
Also what happens if you move house or need more cash for improvements in the middle of your deal. Do they add it onto your current deal or charge you for changing the deal half way through? Im not great with all things mortgagey and dreading having to go through all this again so any advice would be greatly appreciated. Hope this works this time dont want to type it all again as it taken me ages........!:rolleyes:

JoeK_3

Have you asked your present lender for a new deal?

JoeK

FEE_100

Not yet probably the first thing I should have done eh! Will give them a buzz tomorrow and see what they say.

*EssEncE*

If the home improvements are not essential, use the 10k to reduce your mortgage balance. Obviously make sure you transfer the 10k after your current deal has expired to avoid any potential penalties. I say 'potential' as your best checking with C&G your current deal has no extended tie in period.

If you can afford to pay £1,000 a month on mortgage repayments, you could feasably pay off your mortgage in 2yrs.
No point in switching lenders or even applying for a new product with C&G, you would be better off just reverting to their SVR (no fee's payable). Then you have the freedom of overpaying as much as you can afford, without any penalites or restrictions. So if you decided to sell up, you can, without any fuss. The only fee you'll possibly pay would be the closing admin fee (aka Mortgage Exit Fee)

FYI, C&G's SVR is currently 7.75%, and borrowing of £20,000 over 2 years = £902 per month.

Yes the interest rate is high, but that's irrelevant as your only needing to borrow £20k

Jammasterjizz

Remortgaging is not always an expensive option, although I agree that C&G should be able to offer you a decent deal which wouldn't mean you would have to go through the hassle. If you do decide to go for another fixed or discounted rate, ask:

a) Can I overpay on this product (most allow for 10% overpayments, although this would only mean £3k per year for you)?

b) Is it portable (can you move the product onto another property should you decide to move)?

The answer should be yes to both. If it isn't, Nationwide do nice fee free fixed rates. Any overpayments you make with the Nationwide can build up a surplus which can be 'borrowed back' if you need them (for home improvements etc). They would also consider a further advance, should your income validate it.