should i become a mfw??

pebblespop

I am currently a dfw but have been looking at this board for next year - fingers crossed!!

The house i live in is very nice and could be a family home. It's the second house I have lived in but i do not see it as my forever home.

Should I try to pay off the mortgage knowing that in four/five years I would like to buy a larger family home (which will probably increase my mortgage borrowings) or wait until i have the 'forever' home??

is anyone else paying off a mortgage on a house they will not live in for a very long time???

littlemrtinkle

i am doing just that, will probably move in 3 years time, the reason for Overpaying is that you will have more capital in the future to put towards a new home and will have paid far less interest in the long run, so putting more future £ in your pocket. Sooner you start the better!! If you are on the dfw board i would concentrate on your debts first as their interest rates will almost certainly be far higher than your mortgage.

StuartGMC

I concur with LMT, in both cases you are looking to reduce the costs to you. I am sure the good practices you are adopting on the DFW will equally allow you to make much progress on the MFW journey too. Do remember, you will have fees to buy and sell the properties, so make sure you have these saved (or your budget planning includes this so they are there when needed) as you don't want to add them to the new mortgage and pay interest on them of course.

Do also consider what costs you may face in the new home (decorating, some new furnishings like carpets and curtains etc) which again you will want to have available in savings. Then you can OP on the mortgage until you feel the time is right to move.

Best wishes

pebblespop

thanks for the replies - i didn't think about saving the fee's etc before i start over paying - that is a very good idea and one i will be taking on board.

i have a plan for this year to pay off my debts and it is going well so far - should be done by december at the latest.

my current tracker mortgage deal ends in december so if the rates are starting to go back up i will try to get a fixed rate with a shorter term anyway as i have had some good payrises in the last couple of years.

i will also save my emergency/moving pot before i start making extra overpayments.

thanks for the help and advice - hope to see you all back here next year!!!

financialbliss

Hi pebblespop,

I'd say a resounding "yes" to overpay if you can now. We almost cleared our first mortgage meaning that we could put a £105k deposit down on our current house (200k).

If we'd not overpaid on our first house, then Mrs Bliss will almost certainly had to return to work, as we would not have been able to afford a large mortgage on a single wage.

Overpaying gives all sorts of opportunities - go for it !!!

Financial Bliss.

RosieTiger

Absolute common sense to do so ! Souns common sesnse on ensuring you have savings too.
Go for it !

Gillybean

We're the same. this is not our forever house but we're planning on clearing the mortgage within the next 7 years so we'll have the entire value of the house to put down against a place where we'll want to stay.

Paying more now means having to borrow less later, simple.