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need help with mortgage dilemma
bazzaboy
Posts: 1 Newbie
hi this is my very first post so please bear with me
my financial situation is a bit messy but here goes
my mortgage is for 87k with wbbs took on 21.01.05
2 years fixed at 4.75 percent hence will need looking at in 4/5 months
my payments are 515 per month (612 with their buildings contents which were compulsary and accident sickness and redundancy cover).
we have seperate life cover enough to pay off current mortgage balance.
we also have a 5 yr bank loan for 10k at 8 percent or so payments are 212 per month.
as of jan next year for 12 months we have to pay for suite which is 100 per month.
i am now prepared to tackle my problems and was going to do the following:
extend my mortgage from 87k to 100k pay off all existing debts and decrease my term from 23 yrs down to 20.
now i know my mortgage payments will probably increase by around 18o per month and ill have to take out some extra insurance to cover new balance but 2 things
firstly ill feel better because ill have no debt other than mortgage and ill also be able to afford extra mortgage because i would of had topay 312 per month next year for suite and loan.
i would also feelgood because at 34 with only 20 yrs mortgage id feel as though i will own house between 50/55 yrs old.
and im currently on 30k per year in a stable job with a promised 2-3k per annum rise and the odd bonus.
am i doing the right thing or am i being bonkers.
i know overpayments are anoption but i dont want any temptation to not overpay.
ive been a fool in past but want toput that right from now on and this site and you good people have inspired me to write this.
is their a better alternative that you think would save me short term/long term am i doing the right/wrong thing?
im used to living with very littlespare money so even a big mortgage doesnt completly frighten me as i would make upwith reducing the years.
my intention is to be on 40kplus in 5 yrs time so extra mortage would be sponged up by then and i then hope to knock another 2 years off.
would i be best sticking with current lender and getting another deal or should i move away and make a fresh start bearing in mind i wont have that much cash for arrangement fees etc.
forgot to mention my home is valued at around 125/130k maybe more.
thank you all for anticipated helpand for reading my life story!!
my financial situation is a bit messy but here goes
my mortgage is for 87k with wbbs took on 21.01.05
2 years fixed at 4.75 percent hence will need looking at in 4/5 months
my payments are 515 per month (612 with their buildings contents which were compulsary and accident sickness and redundancy cover).
we have seperate life cover enough to pay off current mortgage balance.
we also have a 5 yr bank loan for 10k at 8 percent or so payments are 212 per month.
as of jan next year for 12 months we have to pay for suite which is 100 per month.
i am now prepared to tackle my problems and was going to do the following:
extend my mortgage from 87k to 100k pay off all existing debts and decrease my term from 23 yrs down to 20.
now i know my mortgage payments will probably increase by around 18o per month and ill have to take out some extra insurance to cover new balance but 2 things
firstly ill feel better because ill have no debt other than mortgage and ill also be able to afford extra mortgage because i would of had topay 312 per month next year for suite and loan.
i would also feelgood because at 34 with only 20 yrs mortgage id feel as though i will own house between 50/55 yrs old.
and im currently on 30k per year in a stable job with a promised 2-3k per annum rise and the odd bonus.
am i doing the right thing or am i being bonkers.
i know overpayments are anoption but i dont want any temptation to not overpay.
ive been a fool in past but want toput that right from now on and this site and you good people have inspired me to write this.
is their a better alternative that you think would save me short term/long term am i doing the right/wrong thing?
im used to living with very littlespare money so even a big mortgage doesnt completly frighten me as i would make upwith reducing the years.
my intention is to be on 40kplus in 5 yrs time so extra mortage would be sponged up by then and i then hope to knock another 2 years off.
would i be best sticking with current lender and getting another deal or should i move away and make a fresh start bearing in mind i wont have that much cash for arrangement fees etc.
forgot to mention my home is valued at around 125/130k maybe more.
thank you all for anticipated helpand for reading my life story!!
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