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Could I pay off mortgagev quicker?
darich
Posts: 2,145 Forumite
I have a standard variable rate mortgage with Nationwide Building society. Total borrowed was in the region of 117k in 2006 and that’s now reduced to around 90k as it’s a standard repayment mortgage with 15 years to go.
Because I’ve been a Nationwide Member for many years I qualify for their 2.5% SVR rather than the 4.5% BMR. So the whole amount outstanding is at 2.5% variable – 2% above Bank Of England rate.
I could also put my hands on a total amount of around 16k in savings. Currently the 16k is split between several different accounts and premium bonds.
Would I be better off going for an offset mortgage by pulling all my money into one pot? Or Rapid Repay (although I’m not totally clued up on RR mortgages)
Thanks
Because I’ve been a Nationwide Member for many years I qualify for their 2.5% SVR rather than the 4.5% BMR. So the whole amount outstanding is at 2.5% variable – 2% above Bank Of England rate.
I could also put my hands on a total amount of around 16k in savings. Currently the 16k is split between several different accounts and premium bonds.
Would I be better off going for an offset mortgage by pulling all my money into one pot? Or Rapid Repay (although I’m not totally clued up on RR mortgages)
Thanks
Keen photographer with sales in the UK and abroad.
Willing to offer advice on camera equipment and photography if i can!
0
Comments
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If you've got a mortgage at 2.5% then I would not pay any extra off at all. You can easily earn 3% interest on your money and it's possible to earn much more by utilising regular savers and maximizing your pension contributions.
Personally I would sell the premium bonds. They pay a measly 1% if your lucky enough to win a few times. You can do much better elsewhere.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
Switching your premium bonds to reduce the mortgage debt would improve the guaranteed return on your money.
Always recommended to hold a good cash buffer as an emergency pot.0
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