should we pay off our mortgage?

wjm.bobo

Hi could someone explain how the different options could be of benefit to us?

currently have £66,601 outstanding 1% repayment (old Alliance and Leceister) 12 years 3 months left. Monthly payments £481.19

Plan to move in 12 months will be upsizing so will need to borrow £200,000.

Should we keep our existing mortgage and take out another mortgage for difference in 12 months? and save inheritance of £148k in isa's etc for 1 year?

Should we pay off our existing and be mortgage free for 12 months and save the difference and start all over again with a new mortgage. Will this option hinder us in anyway currently 48 years old.

Meeting with bank next Wednesday do we need to see savings expert or mortgage adviser or both, they're are both trying to sell us different options but not sure what to do for the best.

Just don't know what to do?

getmore4less

The starting point is see if they will let you port the existing rate/debt and add to it and what the rate on the added bit will be(there should be a few options)

this will give you a benchmark for any alternative like paying of and new mortgage.

1% is a good rate but only if the other bit will be relatively competitive

Are you adding the £148k to your existing equity and still need £200k on top?

£200k over 11y is going to be in the order of £1700pm. extend out to 65(16y) £1250

wjm.bobo

Is it possible/easy to port existing rate/debts as a rule?

Adding £148k to existing equity so £200k will be on top.

Would we be classed as a first time buyer if mortgage free when looking at rates and is there any benefit doing it this way rather than remortgaging/porting etc.

getmore4less

Some lender are better than other on porting rates.

LTV age and income/affordability will be the key factors for rates term etc, if you can get more then 1% net on saving keep the mortgage.