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Depends if you need the cash in the near future. Obviously the month-to-month impact of even quite a large lump sum paydown will be disappointingly small.
Compromise would be fixed offset and dump the savings in there 1 day after completion. But you would usually pay a higher interest rate for the flexibility to get the cash back out again.
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I think "it depends" but I'd consider it - question is when to put the money in, do you overpay as much as you can now or hold onto the cash. I'd be looking at:
- what return can you get (guarantee) on the cash while you wait until renewal vs. what would you save on interest if you pay it in now
- how much are you allowed to overpay without incurring penalties
There's probably not much risk in sitting on the cash then paying in a lump when you remortgage - you'd just need to try and get a better rate on the cash for the <1 year until you remortgage.
- what return can you get (guarantee) on the cash while you wait until renewal vs. what would you save on interest if you pay it in now
NickCJ
andyfallsoff
@TheButchersDog
Be going in circles reading on this so...
My mortgage is set for renewal next summer and obs the consensus is interest rates are going up.
Does anyone think it's worth putting savings (lump sum) into the mortgage to try to bring the repayments down?
Expecting house prices to go down but we have a 40% LTV at the moment...