I Want To Overpay But I Also Wanna Move

staceydaisy

Hi all i wanna move house but i also wanna pay of my mortgage. should i keep making sml overpayments which im doing now or shall i save for the fees for my move and try and get some sort of deposit together too

JayZed

There's no either/or between paying off your mortgage and saving for a deopsit: any overpayments that you make will reduce your outstanding mortgage and increase the equity in your current house that you can put towards your next deposit.

It would be worth setting £1-1.5k aside for solicitors fees, valuations etc.

StuartGMC

Any fees associated with changes to present lender to move mortgage?
Removal fees?
Estate agent costs?
Searches fees?
Immediate costs on moving/decorating etc?

I think you may need a bit more than JayZed suggests (say £5k?) but agree with comments on mortgage OP.

JonnyBravo

StuartGMC wrote: »

Any fees associated with changes to present lender to move mortgage?
Removal fees?
Estate agent costs?
Searches fees?
Immediate costs on moving/decorating etc?

I think you may need a bit more than JayZed suggests (say £5k?) but agree with comments on mortgage OP.

:T What he said!

Yep if you're definitely going to move soon then you should save to make sure you have enough for expected (and the inevitable unexpected) bills.
If you change your mind then hopefully you can slowly move the money (from the high interest account youll be using to save.... right?:cool: ) back to overpayments for the mortgage.

staceydaisy

thanks guy this all help i wil be looking at saving and paying of the mortgage then. i currently can only afford £50.00 a week and that as to be shared between

savings
mortgage - £99,125
credit card - 300
catalogue - £63.00

Welshlassie

staceydaisy wrote: »

thanks guy this all help i wil be looking at saving and paying of the mortgage then. i currently can only afford £50.00 a week and that as to be shared between

savings
mortgage - £99,125
credit card - 300
catalogue - £63.00

Get these paid off before you start on the mortgage, the interest rates are likely to be significantly higher and therefore costing you much more, so its false ecomony to be paying off the mortgage aswell.

v.rajput

Hi,

Were exactly in the same situ, we started overpaying about 3 months ago, but then as house prices were coming down: no body was taking intrest in our house and i thought the overpayment is stuch in the mortgage until i sell.

Now interest rates have come down, i am on a tracker, so i am now only on 3.89%. So with this i am probably better putting the money into a savings account.

But again we really need to move, kids need bigger rooms, and the wife needs a bigger room for her ego.

At the moment, with the housing market were thinking about not to look to move for a while.

In the meantime, were gonna use the intrest gained on any savings as an overpayment. So i am still saving but the intrest i gain on that will to the overpayment.

Im also concerend that intrest rates may shoot up to somethin i cannot afford, so like you part of me still wants to overpay, allthough on paper its doesnt seem the right thing to do. A lot of ppl on the forums have said to me to save for more flexiblity.

We bit just poke the idea of moving at convert the loft for the extra room, but who knows... if you make a decsion let me know.


vj