Interest Only Mortgage

miniwol

This time last year I was planning to emigrate to Australia so took an interest only mortgage out with the woolwich to help us with our finances in the short term. Sadly we have had to put a stop to our emigration plans and now need to put our finances into order. At the moment I do not have any way of repaying the capital on the mortgage and am loath to go back to the financial advisor who organised the mortgage in the first place (very high fees). I am happy to keep the mortgage as it is, tracker at 0.18% above the base rate but do I get an endowment policy or pay into an isa or what? Help please!

vwjo

I would've thought the best place is an ISA with as high an interest rate as you can get.... be interesting to see what others think..... good luck! :-)

neas

So you were planning to emigrate to Australia... sell the house and move their i presume?

If you don't mind me asking, what caused the stop? I mean this would still be obviously the best solution. Sell for XXXK and emmigrate like a rich mofo .

Gorgeous_George

If that tracker is a lifetime deal then it is particularly good. Any arrangement fees will have been paid so do not change the mortgage.

ISAs currently offer in excess of 6%. Your mortgage is 5.24%. This means you can save a limited sum (£3,600 each per year) at a higher rate than that at which you borrowed it. Good news!

So, use your ISA allowances and keep the mortgage IO. If you need to save more than your ISA allowance(s), post again and I'm sure people will be able to offer further option.

GG