Advice re mortgage redemption needed

Andypandyboy

getmore4less wrote: »

She has two mortgage accounts one with 6 months left to run and £25.500 outstanding, all interest only. Monthly payment is £75


Something funny there if SVR it should 2.5%(£54pm) or 3.99%(£85pm)

The other is for £27,000 with £3000 of that being a repayment mortgage, and it has 13 months left to run. Monthly payment is £440

Again 2.5%(£300pm) or 3.99%(£335pm)



If it were me, and the savings were not making more than the mortgage.

Pay off the 6 month and use the rest to reduce the 2nd then make payments to have it paid of in the 13months


Then start saving again.

why keep the mortgage?

I saw the monthly figures and the interest rate and they were as I stated. How did you arrive at the above figures?

I suppose most people just pay what is asked of them and never think to query it. I know I never have - maybe I should have!

cloudydays

Andypandyboy wrote: »

The endowments weren't tied to the mortgage, and the mortgage company aren't insisting on her paying it offers now. The endowments were to repay the mortgage but not assigned to the mortgage company, so the monies were paid straight o my sister.

She has been in this afternoon and repaid in full the one which has 13 months to run freeing up over £500 pcm which she will now add onto the £175 (inc current overpayment) that she pays on the other.

As she also paid c£9,500 off the other account this will give her six months overpaying at c£700 pcm before that term ends which will mean that the balance will be around £13,000 in Feb, at that point she has been quoted a monthly figure of £231 if the term is extended to 5 years on repayment terms but if she then carries on paying the £700 it will be repaid in under 2 years.

Nationwide said there was no advantage to repaying one over the other, but doing it this way means she has more flexibility with payments.[/QUOTE

In post 3 you said they insist on repayment now.

jacobtheamish

getmore4less wrote: »

Something funny there if SVR it should 2.5%(£54pm) or 3.99%(£85pm)

The other is for £27,000 with £3000 of that being a repayment mortgage, and it has 13 months left to run. Monthly payment is £440

Again 2.5%(£300pm) or 3.99%(£335pm)

Repayment
£3,000 over 13 months @ 2.5% = £234pcm
@ 3.99% = £236pcm
I/O
£24,000 @ 2.5% = £50 pcm
@ 3.99% = £80pcm
so

2.5%(£284pm) or 3.99%(£316pm)

Andypandyboy

cloudydays wrote: »

Andypandyboy wrote: »

The endowments weren't tied to the mortgage, and the mortgage company aren't insisting on her paying it offers now. The endowments were to repay the mortgage but not assigned to the mortgage company, so the monies were paid straight o my sister.

She has been in this afternoon and repaid in full the one which has 13 months to run freeing up over £500 pcm which she will now add onto the £175 (inc current overpayment) that she pays on the other.

As she also paid c£9,500 off the other account this will give her six months overpaying at c£700 pcm before that term ends which will mean that the balance will be around £13,000 in Feb, at that point she has been quoted a monthly figure of £231 if the term is extended to 5 years on repayment terms but if she then carries on paying the £700 it will be repaid in under 2 years.

Nationwide said there was no advantage to repaying one over the other, but doing it this way means she has more flexibility with payments.[/QUOTE

In post 3 you said they insist on repayment now.

That referred to Nationwide insisting that if the term was extended only a repayment type mortgage would be on offer, not that they were insisting on her repaying the existing mortgage.