Hi everyone, I know i'm going to ask one of those questions that has not definate answer but i just wanted to see the opinion of some experts out there.

I'm looking to get a mortgage of 90k against a 358k house.

I do have the money to pay this outstanding mortgage off in approx 6months to a year but its currently being invested in dubai and i cant touch it yet.

Originally i was going to go for a SVR and hope the rates dont raise too much and pay the mortgage off in a year or so (maybe earlier).

Then I though maybe fix for 2/3 years and have a interest only mortgage and its about £300 a month and then when the fixed rate has ended pay up the mortgage from the investments.

Now thinking it might be best to go for a SVR and pay off have the option of paying it off in a year if not two.

The mortgage broker i'm using said it all depends on what I think the interest rate will do

ive tried to create my own little spreadsheet and list the monthly payment costs, and then add all the intitial costs such as valuation fees/booking fees etc. I suppose i need to compare if the amount of intital costs add on more to the loan even if the mortgage rate increased with a SVR and if they did rise what sort of rise to expect. All very confusing and i've been trying to work it all out since 9am this morning and i havent got far

Well, at least it's a positive situation.

The trouble is it really comes down to what you want and expect - the trouble with interest rates is that banks have stopped tracking the Bank of England rate and now have Mortgage Standard Rates (or similar) which is their own tracker set up the BoE's rate.

So it really would be a case of just doing the maths and seeing what would work out best for you. If there's little call between either option, then it sounds like the repayment period may be so small that neither makes a significant difference.

Hope that helps.

hi thanks for replying, unfortunatley maths isnt my strong point, i think the problem lies in that i could pay the mortgage off if it wasnt for more investments possibly in dubai, however i have found a rather good fixed 5 year rate on rbs website, which gives me options to reinvest if i want to over the 5 years, i can overpay by 10% each year and at the end of the 5 years, pay the mortgage off.

Hi If you think you are able to repay your mortgage in 6-12 months, it is may be ok to stay on a variable rate, however you shuold take into account that if BOE will increase base rate, lenders are likely to follow. Also in the current climate there are not many lenders which will allow a new mortgage on a variable rate.On an interest only it will cost you £239 and £276 a months if you fix fit for 2 yrs. Most mortgages allow overpayments of 10-20% a year and there are mortgage without lender fees. Of course their interest rates are a bit higher. Have you ever thought about an offset mortgage? If you have savings it may be not a bad idea in your circumstances.

Hi, yes i have looked at the offest deals as some look very good for me, however the hosue we want we will use some funds to extend it and the rest will be left in dubai in investments so i wont really have much to offset against for very long. I'm leaning towards a 5yr fixed now and overpay by 10% each year thsi will allow me to extend and invest, and having a interest only mortgage would be good and cheap and then pay it after the 5 years ar eup.

Its so hard to try to compare them against each other, there never seems anything perfect