MSE News: Base Rate 'to stay frozen until 2011'

Mr.Brown_4

mpazza wrote: »

Hurray Just received a letter from C&G saying my 5.29% fixed rate is ending and going onto their SVR of 2.5% Nearly £300 a month better off!

Would quite like to overpay to increase my equity (currently about 30%) so I can get a decent deal when the rates start to rise or is it better to use the saving to pay off £20,000 on credit cards, which will help more getting a bigger mortgage in a year or two?

20k on credit and you are thinking of a bigger mortgage? Words fail me.

In all seriousness you should pay credit cards, then mortgage in that order. Then aim to save 6 months expenditure as a rainy day savings, and finally look at the mortgage or next house move.

lemonjelly

chucky wrote: »

i didn't want to mention it. he was probably on a 0% deal

if i had it would have pushed Graham over the edge and more froth would have been coming out of his ears if he knew someone that was even more better off than him.

i'm one of those caring sorts that thinks about others

:D:D:D:D

I'd just like to ad something here...
Nah, would be unfair!;)

Harry_Powell

Mr.Brown wrote: »

20k on credit and you are thinking of a bigger mortgage? Words fail me.

In all seriousness you should pay credit cards, then mortgage in that order. Then aim to save 6 months expenditure as a rainy day savings, and finally look at the mortgage or next house move.

Let's also not forget those pension contributions....

Mr.Brown_4

Harry_Powell wrote: »

Let's also not forget those pension contributions....

Fair point. I would personally put debt above all else as something to get rid of. But each to their own of course.

chucky

Harry_Powell wrote: »

Let's also not forget those pension contributions....

and max out the Stocks and Shares ISA

Thrugelmir

and buy some gold bullion.

Mr.Brown_4

.. and pay off debt.

Sorry, but it needed repeating. Debt is an anchor around your neck. It will drown you in worry.

It would take a fair old time to pay off 20k on credit cards. That's a long time being miserable.

Thrugelmir

Mr.Brown wrote: »

.. and pay off debt.

Sorry, but it needed repeating. Debt is an anchor around your neck. It will drown you in worry.

It would take a fair old time to pay off 20k on credit cards. That's a long time being miserable.

Certainly before increasing the mortgage and moving house.

mpazza

Fair point,

I've got it down from £28000, in the past year, wife had nine years off work bringing up kids so did a fair bit of 0% swapping and remortgaging to afford a house and cost of living in the overpriced South East! (Can you tell I'm a Northerner)?

Now we finally have two incomes it should be quicker to pay off but would like to move house in a year so she feels like reurning to work improves our lives!

smk77

mpazza wrote: »

Fair point,

I've got it down from £28000, in the past year, wife had nine years off work bringing up kids so did a fair bit of 0% swapping and remortgaging to afford a house and cost of living in the overpriced South East! (Can you tell I'm a Northerner)?

Now we finally have two incomes it should be quicker to pay off but would like to move house in a year so she feels like reurning to work improves our lives!

Looks like your question went unanswered!!

If you pay off the credit cards what will your LTV be on a new property (take into account the value of your property probably isn't what you'd like it to be!)?

I think you seriously need to have a think about this one. Would you be able to afford repayments on a new property if interest rates were at 8-10% in a couple of years time?

I'm trying to make as many overpayments as possible at the moment because I don't like the above scenario. There is no chance that we are going to move up the property ladder until I know that we could afford high interest rates on a bigger mortgage. It's a time bomb..