Redundancy & Remortgage

Cortinaa_GTR

Any advice please guys,
Redundancy pending Nov 23 so should have around 50k in the bank
Remortgage due in Apr 24 going from 1.6% to ??? on155k of debt with house worth 330k approx.
I'll hopefully be working again obviously but should I sink funds into reduce debt albeit restricted by OP limit. Or try to get the cash invested and earn a bit? Are offset mortgages still a thing as they don't seem to appear in any searches even on here?

GrumpyDil

When your current fix expires there won't be any OP limit so you could choose to pay 50k off and remortgage the balance. If you don't have a new job at that time you'll likely be limited to whatever your current provider offers though. 

silvercar

Once used to reduce the mortgage you can’t get the 50k back, I’d keep hold of it until you have another job.

Brie

agreeing with the gloom and doom of the others that you should hang on to the cash as long as possible.  Maybe put it in a high interest fund while you wait things out to max it in the meantime.  

Secondly and hopefully more positive....how def is the redundancy?  Sometimes these things roll on for some time.  If you get to the point where you haven't been made redundant officially you could get an agreement in principle on a new mortgage rate?

Good luck with it.  i know lots of people view redundancy as a dreadful thing but it's possible to make it a positive with the right attitude and a minor bit of luck.  At least you are preparing yourself which is more than some do!!

TheAble

+1 for hanging onto the money until you're back in employment and through your probationary period. Keeping plenty of liquidity and staying current with your payments trumps reducing your interest bill.

london21

Re-mortgage is easy especially if staying with the same lender.

Can do it yourself once logged into your mortgage account. 

Newbie_John

london21 said:

Re-mortgage is easy especially if staying with the same lender.

Can do it yourself once logged into your mortgage account. 

It's not a remortgage, it's product transfer 

Cortinaa_GTR

Thanks folks, I can't look at my current providers offers until Oct 30th I think. The redundancy is guaranteed (I volunteered for it after a traumatic 18 months at work and a spat with HR) so I do feel like a fresh start is required. The timing of the remortgage and rise in interest rates has provided immense concern though. I'm not in the worst position but without a decent new job it could be squeaky bum time!

Also that is where the offset query came from, as a way to keep the cash and utilise it. However I don't think my current provider offers them so I'd need to be in full employment if I wanted to completely switch lender which isn't guaranteed.....