Only 5 Years left, can I cut it?

BizzyBee_9

Hi All - New here, need inspiration, advice and encouragements please, as I am feeling overwhelmed with money issues.  🙇🏻‍♀️

Mortgage due to end in 2030. 

Really want to see if I can race to the end sooner and I want to find the best way forward. 

Have an old Offset mortgage that I have been overpaying, currently owe 
45k and have 20k offset. 

Interest Rate is now 6.99% and it seems a lot! 

Help please- I am wondering:

Is it worth trying to move mortgage at this stage? Try to find a Lower interest rate and forego Offset? 

Would that even be possible? 🤷🏻‍♀️

Do I just keep overpaying as much as I I can?  

Do I attempt to max out the Offset Savings to 45k and then continue to overpay to reduce the capital and term? 

Any help or insight would be gratefully received. 

tacpot12

If you have other money issues, then refinancing your mortgage onto a lower rate could be part of the solution. 

I'm not clear whether you owe £45k on your morgage but have £20k of savings with your mortgage provider so you are only paying interest on £25k, or do you owe £65k on your mortgage but have £20k of savings with your mortgage provider so you are only paying interest on £45k?  Can you confirm which it is? 

What is your house worth (roughly)?

What rates and fixed have you found?
Have you spoken to your current lender yet to see what they could offer you?

BizzyBee_9

Hi tacpot12
This is my main big issue and is my biggest bill. Need to sort electric etc after that.

45k Owed on mortgage, 20k in Offset savings, so paying interest on 25k of the 45. Maybe possible to lend 25k from a relative to max it out. 

Found 5yr fixed rates at 4.5- 4.7, but some have £999 fee, plus early repay fee of 125, and any solicitors fees if needed…
 

BizzyBee_9

tacpot12 said:

If you have other money issues, then refinancing your mortgage onto a lower rate could be part of the solution. 

I'm not clear whether you owe £45k on your morgage but have £20k of savings with your mortgage provider so you are only paying interest on £25k, or do you owe £65k on your mortgage but have £20k of savings with your mortgage provider so you are only paying interest on £45k?  Can you confirm which it is? 

What is your house worth (roughly)?

What rates and fixed have you found?
Have you spoken to your current lender yet to see what they could offer you?

House value £250+ 
Have not approached lender as yet. 

AgathaSquirrel

Do you know how much interest you pay daily or monthly? My mortgage is also £45000 and we are on a fix of 4.92% which is £6.07 interest per day. The mortgages you are looking at are obviously lower but you need to factor in the additional costs you mention.