Woolwich Open Plan Mortgage!

montycat_2

Hello,
I have a £100,000 Offset mortgage and I am in a position to pay it off completely but I was wondering if it is more expensive to pay the motgage and redemption off in one go or,to increase the monthly payments and pay it off quicker.
Sorry if this sounds a daft question but I am coming to terms with the death of my Husband as well.

Fairdo_2

Sorry to hear your sad news.

I would also look at the option to bring your net balance down as much as possible so that you retain a small mortgage but keep your payments very low.

Obviously depends on what options you might want to use in the future. At the moment, it is probably a difficult time for you tro start thinking about too many future plans, so it still buys you time until you can think clearly about what will be best for you.

diann_2

Sorry about your loss and hope you wont be offended but didn't you have insurance so that the mortgage would be paid in full on the death of a spouse

Fairdo_2

diann wrote:

Sorry about your loss and hope you wont be offended but didn't you have insurance so that the mortgage would be paid in full on the death of a spouse

I think that is what she was explaining by the fact that she is in the position to pay off her mortgage!!!!

diann_2

Fairdo wrote:

I think that is what she was explaining by the fact that she is in the position to pay off her mortgage!!!!

So in that position you have an option to have your mortgage paid in full or keep the money to do with as you please? Just want to know for future reference in case my husband falls down a ladder!!!!

diann_2

I would also like to add that not all of us are knowledgable about these areas which is why this site is so popular. I obviously wrongly assumed that the insurance policy would directly pay off the mortgage. I apologise for my ignorance and lack of knowledge which I hope to imporove from other people on this site.

Fairdo_2

diann wrote:

So in that position you have an option to have your mortgage paid in full or keep the money to do with as you please? Just want to know for future reference in case my husband falls down a ladder!!!!

Diann

Apologies if I sounded stroppy then.

Should I be warning your husband not to do any work from heights for a while!?!

With Life Cover, most lenders do not ask for it as direct security these days, so effectively it could be used for anything by your choice.

montycat_2

Hi ,
Firstly,We did not have an insurance specifically to pay off the mortgage .The insurances we did have however ,covered us enough to pay off the mortgage and leave me and my 3 young children comfortable.
Secondly,plese do not joke about Husbands falling off ladders -my husband was electrocuted whilst stood on a ladder .I would not wish that on anyone!

Al_Mac

Being an open plan it is off set, you should put the money in to a savings account which is off set against the mortgage, you will get no interest on the money, but pay none on the mortgage, plus have the benefit of access to the money if required.

Best of luck.

montycat_2

Hi,
We having a savings pot with the offset plan and a current account so,if I pay the lump sum into the savings pot ,it negates the interest.I just pay monthly instalments .
Is that correct?

Al_Mac

I have a Virgin so wouldn't pay anything.

But I suppose yes, which can come from your savings I suppose. I think it is the right thing to do, but give them a bell to confirm.

Also, see a financial adviser, you need to, for the future.