nearing end of mortgage-what to do?

vonney_2

our mortgage is £25K fixed at6.25% and finishes August 2006. Our endowment will cover it - just! We want to raise money using the house (worth £260k); do we take out another mortgage or find a way of using equity?

herbiesjp

Your first port of call would be your existing lender, to see what they will offer you - as you would have a penalty to move away before next august.

Then you would need to see if there are any better rates, and whether those rates would be low enough to re-coup any penalty fees paid

Thefunkygibbons

How much do you want?

Bearing in mind the fees, it may not be the best way of borrowing smaller amounts

vonney_2

Both hubby and I 61; we were thinking about equity release but believe this only available when we reach 65. Also, it seems a very expensive way of raising cash on our property (in the long run). Surely there is a better way of raising cash for holidays and other 'luxuries' which our pensions won't cover, which won't mean our kids losing out on a large portion of their inheritance. I really have an aversion to insurance companies taking my
hard-earned money; they've had enough from us over the past few years in losses on endowments and pension schemes. Was wondering whether it would balance out to take out another mortgage at a decent rate fixed for, say, 5 years. Bulk of monies could be earning interest in savings but we would have access to it for hols etc. Would be grateful for any input, whilst understand a certain amount of financial jargon we do get a bit confused (its our age!!)...