fixed rate or tracker for 20k mortgage

dave73

i have 20k left to pay on my mortgage my rate has come to a end now so would i be better going for a fixed rate or tracker to or any other ideas to clear my mortage

Gorgeous_George

You may find it difficult to borrow £20K. I know when I wanted a mortgage, the minimum was £25K. If so, a flexible tracker may be suitable. Borrow £25K but invest the additional £5K in the attached savings account. This means that you would be paying a £25K mortgage and overpaying by the interest om the £5K.

I hope that is reasonably understandable!



GG

apk1

reallistically the difference in interest will be minimal either way, as the bulk of your repayment will probably be capital (assuming the term is now relatively low).

Best option to go back to your existing lender and ask for a retention product, almost certainly with no fees, as on that amount you will be unlikely to recover your costs in reduced interest.