Savings or overpayments?

musogirl295

Hi all,

I've been lurking on this site for a while but this is my first post and am looking for some advice.
are
In March my husband and I bought our first house for £155k on a 100% mortgage. Our mortgage deal is a 2 yr tracker with RBS and we our able to make 10% overpayments a year.

We have just over £3k in savings and after all bills and living expenses we have about £500 leftover a month.

Obviously at the end of our deal we are going to need to get a new deal and in the not too distant future we would like to think about upgrading to a slightly bigger property.

Property prices in our area haven't dropped as much as other areas and an almost identical house round the corner recently sold for £153k.

The other issue we will face when remortgaging is that my income has changed. I still earn the same amount as I did when we took out the mortgage but I am now self-employed. Will this make it harder to get a new mortgage deal/bigger mortgage?

Are we better off putting our excess in savings or overpaying the mortgage? Any advice greatly appreciated!

dimbo61

:eek: 100% mortgage
Split the money you have spare and overpay by £300 a month and also
save the other £ 200 into an ISA
With the credit crunch you really need to build up more equity in the house and I dont mean spending thousands on home improvements but bring down the debt.
SAVE EVERY PENNY and overpay
no sky, no expensive hols, new car just save save save

getmore4less

musogirl295 wrote: »

Obviously at the end of our deal we are going to need to get a new deal and in the not too distant future we would like to think about upgrading to a slightly bigger property.

Churning houses costs a lot of money think £5k+ especialy if you go into stamp duty.

When prices drop(they will) you will find it difficult to move if in negative equity.