We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Advice needed
Jimmy_Rooke
Posts: 1 Newbie
Currently on an interest only mortgage where the deal expires 3/1/18 (trying to be organised)...have been saving into an stocks & shares ISA & the market has been kind to us.....by the time the remortgage is due I will have approximately £18k left to go. Currently able to put in just shy of £1k a month (not including the interest only part of just over £240 per month)...so the question is what to remortgage to....stick with interest only- perhaps get a 2 yr deal, or look at those offset mortgages....a factor to consider is what the stock markets might then do over the next 2 years....appreciate any advice (1st time poster)
0
Comments
-
With just 18k left to go, I would be inclined to remortgage onto a repayment mortgage for two years. I think the stock market is likely to fall over the next two years, so I would look to take the profit now. You will struggle to get an mortgage for 18k so leave 7k invested in the ISA in case the market continues to perform and borrow £25k on the repayment mortgage. Keep saving any excess over the repayments into the ISA and clear the whole loan when the amount in the ISA exceeds the loan balance which should be at around the 15month point if the markets crash and the 12 month point if they continue to do well.
Never take a risk you don't have to.The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.0 -
how much is owing now?
What rate are you paying? (£240pm interest only is a lot)
What is the ERC?
What is the follow on rate.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.5K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.4K Work, Benefits & Business
- 604.2K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards