Help - 36K mortgage 16K to offset or not to offset???

Chocolate_Monster

I really hope someone can help me. I am going crazy with all these figures.
I am trying to figure out what kind of mortgage deal I should be going for like millions in this world!

I currently have 36K left on my mortgage. I have 6K in ISA's (5% interest rate), and 10K in my savings account (5.5%). I over pay my mortgage by an extra 200 pounds a month.

My current Nationwide deal finishes at the end of May. I will have to pay 90 pounds admin fee to leave but that is all. Their best 2yr rate they can offer me is 6.58% fixed without a fee, as far as I have worked out.

I really don't want to be tied in longer, as I hope that over the next couple of year myself and my new partner may buy together (he has his own place already too).

As my mortgage is quite small all the admin fees seem to out weight any benefit from moving lenders to one with a lower rate but big fee. Is there any good deals out there for people with small mortgages?

Would I be better of with an offset mortgage???
I have been looking at the First Direct offset mortgages.

"2 year fixed rate offset Mortgage

5.25% for 2 years, reverting to our standard variable rate for the remaining term, currently 6.25%.
The overall cost for comparison is 6.2% APR.
(no arrangement fee / fixed offset Mortgage booking fee of £99)"

I can still can make over payments with this.

I have tried to use the offset calculators and the formula to work it out, but I am really struggling.

Have I got my money which is in my ISA in the right place, or should I be paying off my mortgage??? I could do with some back up money in case I need to do work on the house or I loose my job. From this month on my personal situation has changed so I won't have any extra money to put into savings (unless you count the 200 pounds over payment I still plan to pay off each month) am I being over cautious????

Any help would be very much appreciated.

Many thanks

strongboes

Personally and you would have to do the sums to see if it's suitable I might add, then i'd put 13k of your savings on your mortgage, keep 3 in the isa, and pay the rest of the mortgage off asap!

Capricorn_One

Barclays/Woolwich will let you offset the ISA with their offset tracker.
I think the arrangement fee is £599. I'm assuming the loan to value % is very low so it's 5.99% (this week anyway).

Kaz2904

Do nationwide have anything they can offer you?
As it's 6k you have in ISA's I would shove your £3600 in next week for an ISA. Maybe the Lloyds one as you'll be over 9k.
Consider putting the rest in a high interest account. Try to get a no tie in deal with Nationwide so you don't pay a redemption fee and try to get a no fees one (if possible) then chuck every penny spare (not your isa) at your mortgage. You could clear the left over amount with your OH's help quite quickly. If you're at a stage of living together pick the most rentable property and rent it and live in the other.
You'll have one heck of a deposit for your next house.