pay extra on mortgage or save for work?

Fliss_M

ok, may be the right place or not, unsure but....
We had a 95% mortgage, obviously not anymore. Well come march we on 0.99 + BOE. The extra we going to use to get the credit cards payed off 1st. But then (and I mite add this is VERY forward thinking) I have a choice. Ether overpay on the mortgage, OR put the money to one side as we plan to have another child in 2-3 years and we in a 2 bed house and I plan to stay here for another 5-8 years. So we need to extend into the roof. So should I save for that?

So choice, overpay the mortgage and take out a loan for the roof (current estimate of £14,000) or save for it so when the times comes we can pay for it out right or at least in major part.

Plus the extention will ad to the house value by the same amount. So am unsure what to do now

Joe_Bloggs

I'm sure that you should continue to pay off the debts at the highest interest rate first. If you later put money towards your mortgage then you may be able to qualify for a mortgage holiday or similar relaxation in terms should unforeseen circumstances be an issue. You may also be able to request some or all of your overpayments back. These flexible features may or may not exist and will depend upon the detailed terms and conditions of your specific mortgage.
J_B.

Fliss_M

er, not quite sure you know what am on about. I have 2 loans running concurrently. 15k till nov 2011 and 3k till sept 2010 at 0%. Its the credit cards that I can impact on and all will be paid off this year (depending on interest rates and keeping our jobs) and I have income insurance on both jobs to cover the mortgage, loans and costs for 12 months. So payment breaks etc. shouldnt be an issue

Am looking for personnel feeling on what I should do. Save what money I can to pay for a convertion when the time comes rather then take out another 15k loan straight after the last 1, or overpay on the mortgage to bring me more LTV and while taking out the loan, know am adding more value to the house and therefore increasing the LTV yet again.

getmore4less

If you pay down the mortgage then you have to borrow only one option.

if the LTV is not good then you could have problem getting the loan on the the mortgage at a good rate and have to borrow elsewhere.

Saving the money gives you more options.

You can always pay off the mortgage if later you don't need to do the work.

Review once the other debt that will cost more is paid off.

Robert_Sterling_3

Fliss_M wrote: »

er, not quite sure you know what am on about. .

I am not sure that I know what you are on about either. :eek:

chinagirl

As my mortgage payments have gone down with the B of E rates, I was wondering whether to overpay my mortgage. I am considering setting up a Standing Order to pay £50 per month towards the mortgage. This is money we hopefully not miss, as we have been used to paying more than this when the rates were high.
I thought Standing Order, rather than Direct Debit, as you can amend a SO online if need be.