Mortgage term ending

frowner
frowner Posts: 139
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edited 4 December 2023 at 10:23PM in Mortgages & endowments
Our fixed term is coming to an end, with £80k left on the mortgage. Broker has mentioned tracker or offset but struggling to understand the best option for us so any feedback very much appreciated.

Comments

  • Do you have more than £80k in savings or is this all you have? If more than I would have paid off the mortgage.

    You can decide not to - if your mortgage is 5% and best possible saving accounts 6.2% - then you actually making money saving.
    You also never know if you will ever need this much money, here is a "free" loan now.

    Also depending on your age, if you 70+ and worried that you may become a fraud victim then you could also just pay it off..
  • VNX
    VNX Posts: 253
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    As above, you say mortgage 80k and 80k savings, don’t leave yourself with no savings!
  • housebuyer143
    housebuyer143 Posts: 3,151
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    Cash is king..I wouldn't rush to pay it off as mortgages are a cheap form of borrowing.i would offset in your case, or depending on the rate put it in a higher savings account.
  • Postik
    Postik Posts: 396
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    My mortgage is around 3.7% and my savings now stand at 4.99%.  In hindsight I wish I had borrowed more!  If it were the other way around I would choose to pay off the mortgage, unless the difference was negligible.  So if by keeping the money in savings I was, say, £10 a month worse off, I'd probably do that just so I have the cash on hand.  Once you pay a chunk off your mortgage there is no saying you'll be able to get that cash back out in the future, depending on your circumstances at the time.
  • Yorkie1
    Yorkie1 Posts: 11,526
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    frowner said:
    Many thanks for taking the time to reply, sorry should have provided more information we are late 40’s and would have around £30k left in savings if we paid off mortgage in full. Highest savings acct I can find is ns&i 6.2% fixed for a year, but I’m unsure if I will find another high interest account after the year has lapsed.
    £30K isn't that much for two of you; but it's all about your attitude to risk and assessment of whether you'll need to draw on these funds if anything changes with employment or famiily commitments, for example.

    Re. the NS&I reference, the Guaranteed Growth Bond for 1 year at 6.2% has now been withdrawn.  It may also not have been suitable if that's where you put all of your savings, as it cannot be withdrawn under most circumstances during that year - so if you needed to replace the boiler using those funds, you couldn't access them.
  • Ksw3
    Ksw3 Posts: 328
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    Yorkie1 said:
    frowner said:
    Many thanks for taking the time to reply, sorry should have provided more information we are late 40’s and would have around £30k left in savings if we paid off mortgage in full. Highest savings acct I can find is ns&i 6.2% fixed for a year, but I’m unsure if I will find another high interest account after the year has lapsed.
    £30K isn't that much for two of you; but it's all about your attitude to risk and assessment of whether you'll need to draw on these funds if anything changes with employment or famiily commitments, for example.

    Re. the NS&I reference, the Guaranteed Growth Bond for 1 year at 6.2% has now been withdrawn.  It may also not have been suitable if that's where you put all of your savings, as it cannot be withdrawn under most circumstances during that year - so if you needed to replace the boiler using those funds, you couldn't access them.
    30k isn't that much?! How much should 2 people have?
  • dimbo61
    dimbo61 Posts: 13,709
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    Ybs  have a number of offset mortgages with no product fees and free valuation 
    Check out the deals on offer 
  • Ksw3 said:
    Yorkie1 said:
    frowner said:
    Many thanks for taking the time to reply, sorry should have provided more information we are late 40’s and would have around £30k left in savings if we paid off mortgage in full. Highest savings acct I can find is ns&i 6.2% fixed for a year, but I’m unsure if I will find another high interest account after the year has lapsed.
    £30K isn't that much for two of you; but it's all about your attitude to risk and assessment of whether you'll need to draw on these funds if anything changes with employment or famiily commitments, for example.

    Re. the NS&I reference, the Guaranteed Growth Bond for 1 year at 6.2% has now been withdrawn.  It may also not have been suitable if that's where you put all of your savings, as it cannot be withdrawn under most circumstances during that year - so if you needed to replace the boiler using those funds, you couldn't access them.
    30k isn't that much?! How much should 2 people have?
    I've seen 6 months of outgoings quoted as a good level of savings to have (I would caveat that to be essential outgoings) - if 2 people have 60k of essential outgoings per year they probably have a rather expensive lifestyle! 


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