Santander Deal Ending&

ardaragh

Hello
I have just received a letter re mortgage deal ending November 2023 they have said I will be moved to a “follow on rate” of 8.50%??  I owe at the moment a balance of £10,000 as I have been overpaying & only 15 months left on mortgage.
I’m unsure what to do - should I take money from my savings to pay off mortgage it would be a struggle - any advice really appreciated

MorningcoffeeIV

With such a small balance and only 15 months left it's not worth remortgaging.

If you have savings earning less and can spare them, then use some to pay down the balance.

amanda1024

It might still be worth contacting the mortgage company and seeing if they can offer anything better - but would have to be fee free since otherwise the fee would dwarf interest savings. Also, even if you can only overpay part of the balance with savings, that's still worth it since each £ you overpay you're avoiding 8.5p interest

michaels

Could you gat a 0% credit card with a 10k limit and do a money transfer to pay off the mortgage - might only cost you 3% interest for 18 months rather than the 7% plus Santander are charging

Newbie_John

But the difference between best possible fixed at the moment (in theory) 5% (£689 monthly) and 7.5% for standard rate (£700 monthly) is only £11 monthly.

I would just keep standard rate, save on a side and pay it off in full when you feel comfortable with it..