Advice Please - best deal for Small Mortgage 36K

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 on the offset mortgage sticky 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

MarkyMarkD

Firstly, FD have withdrawn all their mortgages for anyone except existing customers.

[STRIKE]Secondly, the mortgage you quote doesn't have total fees of £99 but total fees of about £1,499 IIRC.

Obviously they can't do 5.25% for a £99 fee.[/STRIKE]

With a mortgage as small as yours, you want a no-fee deal. I would suggest thinking about ING Direct - 6.09% variable, no fees in, no fees out. It gives you the flexibility you want.

InMyDreams

MarkyMarkD wrote: »

Firstly, FD have withdrawn all their mortgages.

Not if he is already a FD customer.

MarkyMarkD wrote: »

Secondly, the mortgage you quote doesn't have total fees of £99 but total fees of about £1,499 IIRC.

Obviously they can't do 5.25% for a £99 fee.

Erm, I beg to differ... http://www.firstdirect.com/mortgages/rates.shtml

MarkyMarkD wrote: »

With a mortgage as small as yours, you want a no-fee deal. I would suggest thinking about ING Direct - 6.09% variable, no fees in, no fees out. It gives you the flexibility you want.

Actually this I agree with. With such a small mortgage, the rate is not going to be so important, but flexibility to pay it off is.

Your savings are also not earning as much as your debt is costing, so I would consider at least cashing in your non-isa savings remembering that you are about to get a new year's worth of allowance too. But it could be that the difference will be too great to ignore and you might want to cash in all but what you might need for emergencies.

PS... MarkyMarkD, I do love your profile picture ;-)

cells

InMyDreams wrote: »

Erm, I beg to differ... http://www.firstdirect.com/mortgages/rates.shtml

wow that is a good deal!
i wouldnt be suprised if they up their rates by 0.5% when/if they come back :rolleyes:

allan673

go to first direct if you already bank with them - excellent offset mortgage - totally flexible features.
stick a few grand in the 1st direct account to offset and you will be laughing.

good luck

MarkyMarkD

I agree that the FD rates were amazing. I don't like fixed rates, but even I was tempted by them recently. I'm currently in a quandary as to what to do when my present deal expires on 30 June. I might go for ING Direct just because it's not a bad place to sit whilst making my mind up.