I have a Bristol and West (BOI) Flexi Tracker Mortgage fromNov 2005
Original £70K
Left to pay: £58k
£16K on Repayment matures 30.06.2025
£42K on Interest only matures 30.06.2030
Current interest rate is the same on both 1.15% (my deal is baserate + 0.65% for life) and I currently pay £156 per month.
No restrictions on overpayments.
I want to use my savings money (£25k) in the most effectiveway to reduce my mortgage debt.
I am able to convert my I/O part to repayment withoutpenalty, but is this the most beneficial way or just pay off the capital thenconvert?
I have a £42k with-profits Endowment policy connected to themortgage which has always been on target. I guess I would continue to pay into thisas a savings account if I converted to Repayment? Can I make it tax free?
I cant work out whether I should convert mortgage to allrepayment and pay off the 20K or just pay off my £16K completely and pay theremainder to the I/O mortgage?
I believe the bank interest rates will raise in the next fewyears, so will my tracker in turn.
Ideally I wish to learn how to reduce my mortgage mosteffectively in the current financial conditions and perhaps in the near futurewhen conditions will be different with higher interest rates.
My £25K savings is made up of three cash ISAs currentlywith good short term interest rates about to finish in April and the rest incash.
My mortgage rate is portable, so I could take it with me if I ever moved house again.
Any help or advice would be appreciated, I have looked at the Overpayment calculator but I dont know because I have the mixed mortgage?
Original £70K
Left to pay: £58k
£16K on Repayment matures 30.06.2025
£42K on Interest only matures 30.06.2030
Current interest rate is the same on both 1.15% (my deal is baserate + 0.65% for life) and I currently pay £156 per month.
No restrictions on overpayments.
I want to use my savings money (£25k) in the most effectiveway to reduce my mortgage debt.
I am able to convert my I/O part to repayment withoutpenalty, but is this the most beneficial way or just pay off the capital thenconvert?
I have a £42k with-profits Endowment policy connected to themortgage which has always been on target. I guess I would continue to pay into thisas a savings account if I converted to Repayment? Can I make it tax free?
I cant work out whether I should convert mortgage to allrepayment and pay off the 20K or just pay off my £16K completely and pay theremainder to the I/O mortgage?
I believe the bank interest rates will raise in the next fewyears, so will my tracker in turn.
Ideally I wish to learn how to reduce my mortgage mosteffectively in the current financial conditions and perhaps in the near futurewhen conditions will be different with higher interest rates.
My £25K savings is made up of three cash ISAs currentlywith good short term interest rates about to finish in April and the rest incash.
My mortgage rate is portable, so I could take it with me if I ever moved house again.
Any help or advice would be appreciated, I have looked at the Overpayment calculator but I dont know because I have the mixed mortgage?
