Mortgage advice

mopsey

Our mortgage at the moment is around 39k.
My wife is due to recieve an inheritance of around 30k.
After long discussions about what to do with it it sems we may decide to put it towards paying the mortgage off.
We have 12 yrs left to pay, are currently on our lenders SVR and are out of any tie in that we had.
Do we pay off the majority of the mortgage and continue with our present lender at the SVR untill the debt is payed off?
Or
Do we change lenders, re-mortgage for the full amount and save untill we have the full amount saved and then pay it off?
Or maybe an off-set mortgage?

Any advice would be greatly appreciated.

Hope this make sense.

herbiesjp

An offset mortgage would help you clear the debt more quickly with that level of savings held against the mortgage balance.

By maintaining your current monthly mortgage payment amount, you would be effectively making large monthly overpayments each month.

So these overpayments, combined with you saving for the extra as well, should mean paying it off that much more quickly

mopsey

So, to clarify, in your opinion, we would be better off re-mortgaging to an offset account and depositing the inheritance into it as this would reduce the interest payments and payoff the colateral more quickly?

herbiesjp

I can't say either way, as I do not know enough about you to say.

However, it would seem that an offset mortgage may well be a strong contender as being a good option for you