shall i overpay or switch?

starryeyed_2

HIi, i'm new to this site and want to ask your advice!
I have made a resolution to reduce my mortgage significantly. It is currently 93000 and i pay around 600 a month. I can now afford to overpay another 500 a month. I'm wondering is it better to overpay on my current mortgage or switch to one of those ONE accounts.
I'd really appreciate your advice as i havent a clue with these things!! thankyou x

dimbo61

Hi starryeyed
We need a lot more information about your existing mortgage
what is the interest rate is it fixed, offset, tracker etc
and are there any tie in periods.
If you can overpay by £500 a month that is a good start.
Try to have an emergency fund 3/6 months worth of wages in reserve.
consider isa,s if paying a higher rate of interest !
£500 a month is £ 6000 a year plus all the interest you will save.
good luck

Daft_Pegasus

Generally you can get a lower interest rate from a different type of mortgage other than an offset mortgage (such as One Account) so if you can overpay in those then you may well be better off. If you have a large amount of savings then the offset mortgage might be better for you.

As dimbo61 says though, you need to provide more details in order to get better advice.

Capricorn_One

A lot of people talk about the One Account but doesn't have a high interest rate and isn't much better than an offset mortgage but with an offset current a/c.

Aren't there better deals than that?

fagun

Capricorn_One wrote: »

A lot of people talk about the One Account but doesn't have a high interest rate and isn't much better than an offset mortgage but with an offset current a/c.

Aren't there better deals than that?

First direct has a special on at the moment for offset mortagegs - Pay base rate only in 2008 and then SVR with no arrangement fee.