Whats better repayment or paying the difference to the balance at the end of the deal

dr1_2

i have a balance of £106500 with 12 years to go.
i want the best 2 year fixed rate ito overall cost over the 2 years.
if i pay interest only the monthly payment is £550 approx and if repayment it is £1050 approx
ie £500 more.
would i be better to put the £500 per month into the bank and then put it towards the balance at the end of the 2 years or pay the repayment mortgage? which gives lowest balcance at the end of the 2 years?

thanks
dr1

riad_2

It depends what rate you've got on your fixed.. if the fixed rate is less than what the best ISA is paying (at the moment I think best one is 6.3% with NSI?), then it's better to put your extra £500/month in the ISA for the 2 years then pay it off at the end of the fixed.