Opinions please

Carnwaj

I've read this board for a few months now and have loved the inspiring mortgage free tales.

Our own story is nowhere near as exciting.

Current mortgage £190k (£60k repayment, £130K interest only). On a good two year fixed rate deal.

Work is going well and I should be able to pay off £15k-£20k per year. My overpayment track record so far is poor but we've got our act together this time.

Another possibility is to sell our house and downsize to something smaller maybe dropping the mortgage by £80k - £100k.

I'm in a quandary the first option will take years to pay off the mortgage the second brings mortgage freedom within reach.

What do you think - head says move, hear says stay put.

hastie

Go for the overpayment.
As long as it is your home and you are happy, the overpayment is your best option.
It seems like a mountain to climb, and it is, but as you see the capital begin to drop you will feel more in control of the debt.
Also a bad time to down size, wait till market picks up.

Start boldly, there is a magic in beginning with enthusiasm which will carry you forward.

Good Luck

Good luck on your journey.

CLAPTON

how old are you
do you have children
do you really have 15k-20k spare each year
why is your record of overpayment poor

museumworker

Hello and welcome . Your mortgage is exactly the same as mine. I can afford that amount of overpayment this year (I hope!) but after that a lot less (poss £9K a year). I still reckon we could be MF in 10 years. With that amount of OP you could be MF in much less than that, an estimated 7 years according to the Egg Mortgage Calculator.

If you are happy where you are, stay and start OPing. Much better to downsize in a boom as previously mentioned. Check any restrictions on OPing amounts with your mortgage though - you might be better shortening your term.

Carnwaj

The reason for the extra cash is a promotion at work. For the first time I'm going to save it not spend it (avoid lifestyle inflation). Good points about not downsizing when the market is falling. i'm also unhappy about the costs associated with moving (tax, estate agents etc).

Other points were that we're in our late 40s with teenage kids.

I'm leaning towards the OP route but it does seem like a very long haul.

Carnwaj

Restrictions on OP - from memory limited to 10% per year.

stedwell

If it's any help we are also late 40's with a £110 mortgage and teenage kids. Our house is comfortable but certainly not huge but I could not imagine downsizing. It is usually full of teenage friends eating me out of house and home! Also i am hoping that if we can afford to pay off the mortgage and then keep the house when we retire then it will encourage my children to come back home during uni holdiays and also when they are older with their own families. A smaller house will not enable them to do that!