in Mortgage-free wannabe
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Hiya we have an accountant already, he said there is no limits or tax payable with gifting so it's a case of sliding scale until 7 years is up in the hope that we will avoid IHT X
Personally, I'd look at paying the amount off the mortgage which you need to get it down to a 60% LTV by the time of your next renewal. If its currently valued at £465,000, that would be £279,000 - so £49,000 paid off the mortgage.
Then take the remaining £51,000 and rather than over paying your mortgage, put it into a fixed saver of however many years it will be until your mortgage fixed team expires.
I.e. if your mortgage is fixed for 4 and 1/2more years, as an example, I would put that £49,000 into a 4 year fixed saver.
I.e. you can get Fixed Savers paying more than 2% interest for anything more than 1 year fix's - a 4 year fix as an example can be as high as 2.5% interest. By ensuring the fix matures at the same time/just before your mortgage fixed term ends, it ensures you get a better return on that remaining £51,000, whilst then having the option - when your mortgage deal comes out of its fixed period - to review it at a later date and decide then whether you want to overpay (Early Repayment Charges are removed when you go to standard variable rate)the mortgage or fix for your mortgage for another XX Years and also then stick the ££ into a fixed saver for XX years.