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mortgage advice
Jockanory
Posts: 138 Forumite
Hi everyone,
Can any one offer me some advice about the best way to finance a proposed final house move.
I currently have a £50k mortgage with 6 years left,I would need to increase that to £100k to make the move.
I have a company pension that matures in 5 years which will give me a lump sum of £80k and I hope to stay with the company thereafter on a yearly contract for say another 4 years.
My problem is that, should I continue with my current mortgage at £50k,take out an interest only loan for the other £50k and when my pension matures pay off this interest only loan,out of my lump sum,which would in effect make me mortgage free and the savings from my continued employment,I would then put some money back into my pension pot,to replace the £50k that I had spent OR is this unwise and should I look to another form of mortgaging to finance the move.
I hope this makes sense and any advice comments etc would be greatly appreciated
Can any one offer me some advice about the best way to finance a proposed final house move.
I currently have a £50k mortgage with 6 years left,I would need to increase that to £100k to make the move.
I have a company pension that matures in 5 years which will give me a lump sum of £80k and I hope to stay with the company thereafter on a yearly contract for say another 4 years.
My problem is that, should I continue with my current mortgage at £50k,take out an interest only loan for the other £50k and when my pension matures pay off this interest only loan,out of my lump sum,which would in effect make me mortgage free and the savings from my continued employment,I would then put some money back into my pension pot,to replace the £50k that I had spent OR is this unwise and should I look to another form of mortgaging to finance the move.
I hope this makes sense and any advice comments etc would be greatly appreciated
0
Comments
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how much can you realistically afford a month to be spending on a mortgage has to be the key question. If you can afford to put 100k on repayment, then you might aswell do that rather than go on IO as you will pay more interest back. If you can prove you have sufficient income after you retire then you can poss keep the mortgage going for the extra 3-4 years to ease the monthly payment and keep your 80k for your enjoyment in retirement....I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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