5 years mortgage left.

hubb

We have about 15 grand to pay on our Nationwide variable 2.25% mortgage. I have about 10k in Santander savings 123 account. I have legal and general joint life insurance which is £12.66 a month.

The question I am putting out is what are my best options to reduce the mortgage time as well as avoiding possible interest rate increases as my wife is now not working and we want to be mortgage free as soon as possible but a lump sum may blow a lot of savings that could help us in the future (which as we know gets more and more uncertain as years go by) but the flip side is we could avoid paying more interest in the long run. I am wondering if the Legal and general life insurance is worth it for 15 grand but I will have to check the policy.

Anyone with more experince that could help would be appreciated.

Thanks.

LateStarter

It's really difficult to answer this without knowing:
Your ages?
Income?
Are you retired?
Married?


But you do need a rainy day fund, so you certainly shouldn't use all your savings on the mortgage. Will your other half be financially secure if cash in the insurance policy, and then something happens to you?

hubb

LateStarter wrote: »

It's really difficult to answer this without knowing:
Your ages?
Income?
Are you retired?
Married?


But you do need a rainy day fund, so you certainly shouldn't use all your savings on the mortgage. Will your other half be financially secure if cash in the insurance policy, and then something happens to you?

We are 50/52

I am self employed and earn variable low incomes from my media. Probably minimum wage. Married and will have to look into the life insurance policy to answer last question.

beanielou

You could pay off half of your savings ie 5k to the mortgage & then continue to OP the mortgage?

getmore4less

£15k @ 2.25% over 5 years is £265pm, interest is £874.

You should be able to get close/better to that rate for some of the savings so the real cost is not as much.

Could fix at the best rate Nationwide will give you for 2 years(1.84%?)
in 2 years paying the same £265 you will be at £9k and have paid £450 in interest

review then what saving rates and mortgage rates a re doing.

hubb

Well I am currently paying £275 a month so it must be a little over £15000 but pretty much around that figure.

hubb

The life insurance policy runs for the 25 year term of the mortgage with the option of converting the policy into a savings or endowment or whole life plan.