Remortgage Advice

Sportykiss

Hi I'm new on here so any useful advice would be much appreciated.

This is my dilema

In July 2008 my fixed rate (4.55%) repayment mortgage comes to an end. I will have £41500 over 15 years left to pay. I have £5000 saved that i could put towards reducing that amount, should i do that, or put the savings into an offset mortgage, or just reduce the years? I would really like to reduce the term if possible but I dont want my payments to be much more than £360 a month. I have been told not to take out a mortgage that has a high arrangement fee as with the little I owe it would be a waste of money.

Hope someone can give some guidence as I'm not sure what to do for the best.

Cheers

allan673

hi, if it were me i would put some savings to use, and pay say £4500 off the mortgage, leaving you with a £37000 mortgage. have a good look around - ask say 2 or 3 brokers for there opinion too if you want - and you make the decision - nationwide are usually one of the best.

then i would take this over 12 years, on a 2 or 3 year fixed rate deal, the payments will be under £360 per month. especially with interest rates dropping today and probably again in feb.

then when the fixed rate ends you could reduce the term again if you can afford it ?

(everyone has there own ideas, but your in a similar situation to me, and thats what im doing. i will also try and make the odd overpayment now and again, it all helps to reduce the amount)

herbiesjp

Do you have any other savings set aside? If you don't, then potentially keeping the money accessible for an emergency should be looked at also.

In terms of deals go back and see what your current lender will offer you first.

Then, compare against the best of the rest.

At that mortgage level, normally you should be looking towards deals with lower or no fees, even if it means paying a slightly rate of interest.

A lifetime tracker may be a good option for you, unless you have a tight budget or want certainty over payments, and then you should be looking at fixed rates.

Sportykiss

Hi thanks for the replies,

The £5000 is spare. Quite a canny person so always have a rainy day fund standing by just incase.

Some good advice I could probably make overpayments, just dont want the monthly payments to overstretch me.

Would an offset be a waste of time in my situation?

Cheers