Debt management

sumaleej2010

Hi,
I have a mortgage of about £67,000 on a 5 year fixed rate at 5.63% - I have 3 years to go. I have recently bought a car on hire purchace over 5 years at 315 per month. I have been making over payments to my mortgage provider for a few years and have over £5000 in the pot. To reduce the monthly payements and to afford to pay off the car loan I have reduced the monthly morgage paymentrs by extending the term time to 75 years of age (I'm 50) - I have also asked the mortgage company to use some of the pot money to reduce the morgage payments as well - effectively I'm paying the same amount per month as I was with just the mortgage. My question is this - is this the best way to pay off the debt or is there an alternative. Thank you in advance of any suggestions/advice.
Chris

[Deleted User]

Probably too late, but I think buying a new car at a cost of £19k was a mistake. A cheaper car for cash would have allowed you to focus on your mortgage without diping into the overpayments or extending the term.

However, what's done is done. At such a high fixed rate for your mortgage, you might want to investigate the penalties for breaking this and going elsewhere, keeping your payments high and reduce the term. Do you have a plan for making payments for the next 25 years?

sumaleej2010

Hi,
I have a cash amount in a bond account that matures in 2 years that will cover the cost of the car and then hopefully go back to normal with the mortgage making the odd over payment to reduce the term time!!

CLAPTON

what do you mean you have a 5,000 pot by overpayment?
surely this has already reduced the balance otherwise there would have been no point in doing it.