We have a house worth about £100k and our Mortgage balanceis 85k.
I am looking to invest about £2600 a month into the mortgage(basic payment is £460), either as over payments or into the offset. We are aiming to clear the mortgage in 3years.
After 3 years, we will be looking to move into a biggerhouse, probably about £200k.
Regarding the house move, would we be better off to have thecash in the offset? Does this put us ina better position than clearing the mortgage and having £100k equity in a houseowned outright?
If in 3 years we end up with £80k still owing on themortgage but 80k in savings in the Offset, does that mean we could buy a houseof £160 straight away without having to renegotiate a new mortgage?
Any advice or suggestions greatly appreciated.