2 yr deal up soon ... not sure about timing

Ali660

Hi, can I pick your brains please?

Our 2 yr fixed is up in June, £107,000 mortgage with 23 yrs remaining.

If we stick with current Halifax deal monthly payments will increase from £410 to £570 ... ouch.

In Feb 09 we are due a windfall of approx £45,000 and I would ideally like to pay a chunk off the mortgage. Therefore, question of the day is: do we change to another fixed deal or continue with higher payments and remortgage in Feb 09 when we can take the mortgage down to £70K ... or even offset against some of this money (which seems a popular option these days).

Your time and advice is very much appreciated,
Ali:o

UK007BullDog

You have a number of options.

All you mentioned above. I would fix for two years if income is tight. Use the money to overpay your yearly allowance and stash the rest in Isas and savings and then pay off the rest after 2 years.

Otherwise look for an offset mortgage but the rates are higher and some are trackers or SVR's.

Ali660

Thanks for advice ... if me and hubby use up ISA allowance what is next best option for high interest savings? We currently save into a 2 yr 8% deal with Lloyds ... this is also up in Feb so I'll need to find a home for that £7500 too!

One minute you're broke the next the sun is shining:rotfl:

UK007BullDog

Cannot advise on best Isas or savings. Best to go to the savings board for that question. If you have kids you might want to look at savings for them as they are some tax free.