Welcome advice on having a very large mortgage

ellives

Thrugelmir wrote: »

Then maybe defer the house move for a few months and build up further equity in your existing property.

In terms of the £350k mortgage. Say in 5 years time you still owe £320k and interest rates have risen by over 2%. A 2% increase would increase your monthly repayments by around £380.

That £380 is all interest. Or to put it another way, £91,000 over the following 20 years.

My personal view is that with a good income and minimal outgoings you are well placed to save money and take advantage of distress in the market in the years to come.

Some real good points - thanks.

Not sure about hanging around but perhaps that's more to do with me being a poor saver....but excellent at meeting commitments (like a big mortgage payment)...never missed a payment in my life - supported by experian credit scores.

Perhaps a 5 year fix with a lender that has indicated they'd be prepared at a later date to lend £350k if needed?

Thrugelmir

ellives wrote: »

Not sure about hanging around but perhaps that's more to do with me being a poor saver....

I was thinking more along the lines that house prices in many areas are going nowhere in the short term. So by default you'd be in a better position.

getmore4less

ellives wrote: »

Some real good points - thanks.

Not sure about hanging around but perhaps that's more to do with me being a poor saver....but excellent at meeting commitments (like a big mortgage payment)...never missed a payment in my life - supported by experian credit scores.

Perhaps a 5 year fix with a lender that has indicated they'd be prepared at a later date to lend £350k if needed?

Start paying your current mortgage at £2200pm that will tell you if you can afford it.

Shorten the term to increase the payments if there is any issue with ERC for large overpayments.

Do a SOA you should know what you can afford, you have to know where your money is going.

£450 house £350 mortgage 77%LTV so overpaying and increasing equity is a good idea anyway.

£350k 15years 20years
3% £2417pm £1941
5% £2768pm £2310

I think £2200 might be a low target no safety net.