Mortgage & SSIA

G

gillysue

Guest
Hi,

I hope this makes sense, but i'm trying to work out all my options!

I got loan approval last year for a mortgage of 235,000 over 35 years, fixed for the 1st year. At the time, i was due to close in November.

Due to the usual completion delays, i haven't drawn down yet. I'm looking now at a possible completion of mid-march. My SSIA is due to mature in early May. When I got the approval of 1yr fixed, i didn't really consider my SSIA as I thought it wouldn't be ready until 6 or 7 months after drawdown.

Now hoever, i'm thinking that I should go variable instead of fixed as I want to but 15,000 from my SSIA against my mortgage as soon as I can and not have to wait until march next year. Obviously with the rising interest rates the 1 yr fixed is appealing while i get myself settled.

I have heard that I could fix part of it and go variable in part. How does this work? Does anyone have any advise on the pros/cons of each of my options...?

Thanks!
 
Simply ask the lender for a split mortgage x% fixed/x% tracker.

Pros : Best of both worlds if rates go up or down.
Cons: Cannot redeem the fixed part without penalty, if rates go up the variable part will suffer.

Many other but it is a fairly safe play, otherwise you could look at a capped tracker. All the characteristics of a tracker mortgage with the safety of an upward cap on interest rate.
 
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