Should I pay off my mortgage? Discussion area

bobdylan74 · 1 May 2012 at 9:58AM

Hello people.
Im in the process of relocating to Rep of Ireland for a few years. work stuff. my fix rate comes to an end next year(basic repayment mortgage). with a bit of hard work i could save the money to pay off the mortgage when i come out of the fixed rate.(their is no early repayment charge) so they say..
1, Is it worth me pay it off or should i rent out the property and let the rent pay it off??
2, Is there any tax relief to be had from keeping a mortgage going??

I Think that if i pay it off it would be less trouble than having the house stood empty and the trying to find the rent every month.. the move could become permanent.
3, Should i leave the money in a savings account and pay the rent as and when i need to. there is 10 years to run on the mortgage

KELLYMORTIMER · 1 May 2012 at 12:40PM

So we bought a flat on Barratts head start scheme whereby we got 15% loan on the house as deposit. We are thinking to overpay a bit bit of our margage this year. Is it better to do that to lessen the monthly payments, or better to repay barratts the loan (which will mean next year we could change morgage) but if we still have barratts loan we must stay with same halifax morgage (and they could charge any interest) ..we wnat to move next year anyway so we are thinking over repayment is better as we will pay back barratts anyway next year and be able to start a new morgage? Argh im confused..any advice welcome!!!

Debi_M · 11 May 2012 at 12:56PM

Im a newby to all this forum stuff and hope that someone can give me some advice. Looking at the current info I am hopeful.

My husband and I are considering downsizing, paying off the mortgage and putting our normal mortgage payments into savings.

We have a 6 year plan to move south and want to have enough in savings/equity to purchase a property without mortgage.

We have around £65k in mortgage on a repayment (due for remortgage in Sept 2012) and the property value is around £210k/215 (we think).

What we cant decide is if it is more beneficial to pay of the mortgage and downsize - putting the equivalent mortgage into savings for the next 6 years, or to continue paying the mortgage and hope that the property increases by at least the amount we could save + interest. We have estimated that our savings over the 6 ish year period would be around £43k with an interest rate of 3%.

Can anyone give me some advice as to what might be our best option.

Looking forward to your posts

tyllwyd · 11 May 2012 at 1:03PM

One thing to bear in mind is the cost of moving - legal fees, estate agent fees, removal costs, the costs of redecoration etc after you move. Unless you want to downsize for other reasons, I would have thought that all those expenses will eat into any financial savings you would make. (Of course, you might gain on council tax, utilities etc., but my instinct would be that it isn't worth moving twice.)

luigi1209 · 21 May 2012 at 1:44PM

I have a Santander Mtge that was fixed until next month after which I go over to a standard variable rate of 4.24% for a further 11 years. In 9 months I receive a payout from an endowement policy (this will not cover the mortgage suprise suprise!) but I want to use the money to reduce my mtge term. Are there any mtgs that allow me to pay in a lump sum after 1 year or shall I stick with Santander and re-mortgge once I have the cash. Any help would be appreciated

abouttimetoo · 21 May 2012 at 1:50PM

Hi Luigi, welcome to the board

I would recommend that you start a new thread with your question as unfortunately questions sometimes get missed in this thread.

In the meantime you ask if there are any mortgages that will allow you to pay off a lump sum after one year. Each mortgage type has it's own terms and conditions but as a general rule of thumb the ones that are at a fixed rate for a fixed period will have some restrictions on making additional payments. That's not to say it can't be done rather that they might specify a fixed amount or percentage that can only be overpaid while in the defined period.

Have you started shopping around for new mortgage providers yet?

Perhaps if you could also tell us the amount oustanding on your mortgage someone might be able to add some additional thoughts

Regards
ATT

luigi1209 · 21 May 2012 at 2:17PM

Thanks ATT

Have £38600 at present - 12 years left on this mtge. A lump sum of circa £20K coing in a year's time. House valued ooa £180K

Milas · 9 June 2012 at 7:33PM

Hi,

I need some advice pls! I have 10yrs outstanding and my mortgage is now c.100k. As my endowment was falling short (surprise, surprise!) I was advised to change to part interest only and part endownment roughly 50/50 split (this was a few years back).

I now have a lump sum of c.£35,000 that I would like to put to best use and I want to reduce my mortgage in terms of years and amount. Do I use it to reduce my Interest only or Endownment part of my mortgage or do I share it out evenly between both?

Regards
M.

Sepa74 · 9 June 2012 at 9:02PM

I don't think it matters, as long as the interest rate is the same, and there is no difference in any fees you must pay.

However I would discuss it with your bank in case there is some special condition attached to the endowment part that you are not aware of.

AndyShenton · 13 June 2012 at 1:37PM

Hi All,

A little bit of advice would be greatly appreciated!!

I'm at a cross roads i want to move to a larger house in a couple of years and have currently started saving a deposit. I purchased my current house at the peak of the boom but i estimate that the current value is the same as my mortgage balance (83k). i'm due to come off a fixed rate of 6.19% in september where i will default to the variable rate for the term of the mortgage (2% above the base rate).

Do i carry on saving a deposit for a new house (20k) or over pay my mortgage until i have enough equity to move?

Any help gratefully received.

Andy

Should I pay off my mortgage? Discussion area

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free