Thoughts please

consumers_revenge

Hi,

Cant decide what to do. So would like some opinions please?

current debt 12k mortgage 5.5 years left to run. mortgage is £292 a month

from next april I can go onto a new deal ( should be just under 10k then )

option 1, 3 years pay 290 and were done 2.94% deal

option 2, 5 years pay 181 and were done 3.44% deal but it means I have another 110 disposable income each month

option 3 leave it on variable at 4.24% for 5 years and just keep paying off every time I have extra on top of payments which would be £185 pm but I can pay off unlimited amounts extra but with options 1 and 2 I can only pay off 10% extra per year

Mortgage with Halifax

I presume once youve paid off the debt, even if early no extra charges.

I think option 3 would be best?

Thoughts please?

savingholmes

Personally I would get it paid as quickly as I can. Can't advise further without knowing how much you are likely to have spare for over payments. What's the fastest time you are likely to pay it off in?

consumers_revenge

Probably looking extra 100-200 each month

miss_undastood

Most mortgages have a minimum loan of 50k. Are you sure these deals you have found will allow you to take out just 10k?

If you can’t you may have 40k sat in the bank... and you’d be better to stay as you are and pay off as you can...

consumers_revenge

Yea as I’ve been with Halifax for the last 20 yeRs

miss_undastood

Your overpayment of 100-200 a month would be more than the 10% cap

Stay as you are and you’ll have paid it off in 3 years or so with those overpayments

miss_undastood

Do a comparison of current deal and 400/450 monthly payment and the 3 year deal and max payment of 290 and 10% op to see which clears first

consumers_revenge

I did and thats whats in post 1 :-)

the variable is also worth looking at though as its frees up ash if its needed that month