Paying off last 20k of Mortgage without locking into 2 year mortgage

[SavvyAdviceNeeded]

Name changed due to the sensitive nature of this topic.

My husband and I live in a mortgaged house, and have worked diligently to pay down the mortgage. Mid next year we will have 20k outstanding to pay - however, this will all be my debt as my husband contributed more to the deposit. We earn similar salaries so this seems fair.

Usually I could pay this down in one year - I wanted to just extend from 2018 to 2019. But our provider will not extend our mortgage on the current term for only one year (they'll make it two years or up the interest rate), and my husband thinks that refinancing with another provider will be too much effort, and doesn't want me to pay the establishment costs for a new mortgage (about 700 pounds). The interest rates quoted are decent.

He instead thinks I should borrow the money from his father, which wouldn't involve any interest or arrangement costs. I really don't like the sound of borrowing from family - he is a nice person but I don't want to feel indebted to someone or have to accept 'charity' when I earn a perfectly good salary.

What do people do when their mortgage gets down to a small amount? Surely it is normal and acceptable to take out a new mortgage rather than asking for a leg up from a parent?

Is there another way to avoid mortgage arrangement fees? Is it possible to negotiate these?

Thank you and sorry if I should understand how this all works.

I would just let the husband pay the mortgage off, and repay him if you feel you have to.

It's daft to pay interest when you don't have to, as I assume that any mortgage you take out will charge more in interest than your DH is getting in savings?

I see you want a safety net too. In that case, still let DH pay the mortgage off and then if there is illness/redundancy etc, then's the time to ask FIL for help.

Another one here who would opt to stay on SVR and overpay/pay off in one year. The interest on a dwindling amount would be minimal compared to basically applying for a new mortgage amount which you won't get due to minimum mortgage amounts of £25/£30K.

Technically, we have a miniscule mortgage of

I agree - SVR and overpay. Or, if you can borrow from your DH, pay it off now and replace the money over the next 12 months and save the interest:

Go onto SVR.

You BOTH pay it off as soon as possible.

Then if you really want to 'compensate' or 'pay back' your husband you can do so without inuring interest charges.

Or DH pays of now.
You pay him back over the next year.
If there is any major life shock you can borrow form FiL. DH's saving will be quickly built back up to previous level in only 12 months.

It's your debt but his savings. Would they really be available if you needed them.

What an odd situation

For the life of me a can't see why your DH wouldn't offer to pay the mortgage off then, if you are insistent on repaying it, do so over the planned year without interest.

I'm not one for insisting that shared finances are the only option but I honestly can't imagine a marriage where you wouldn't help each other out when you could.

I'm also more than a little that he'd suggest borrowing from his father when he has the money.

Nowt as queer as folk I suppose.

@bearbehind thanks for the judgment and snide "queer as folk", really made my day. Every marriage works differently. We split everything halfway, maternity/paternity leave, childcare costs, food, household expenses and the mortgage itself. I don't judge you or anybody else who may split things differently.

I have appreciated everyone's comments and will look to roll onto the SVR. We have made the maximum overpayment on the mortgage each year already (usually about £20k each as a one off) hence we have reduced it to such a small amount. Not long and we will be mortgage free!

It wasn't supposed to be snidey, it was making the point we're all different.

I simply can't imagine why your husband would suggest borrowing from his father when he has the money.

You might not think it's worthy of judgement but it's not nice on the part of your DH; both in terms of even asking his Dad for the money and for suggesting making you indebted to his father when he has the money.

I had a look at my mortgage offer paperwork today and I'd only be about £20 more a month on SVR compared to the fixed rate.
Obviously it'll vary but if you don't owe much, it shouldn't be that bad. Plus it has the attraction of being the easy option.