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Is it better to overpay mortgage or pay off debt
ClaireyFairy
Posts: 12 Forumite
I will be moving soon. My mortgage payments will be roughly the same as they are now but I will have no maintenance charge to pay (£100 a month) and my council tax will also be about £50 cheaper.
I did have debts of £30,000 but will be able to clear half off these with the proceeds from the sale of my flat.
I am worried about interest rates rising. My mortgage will be split into two seperate parts one is fixed at 4.2% for another year at which point it will go to the BMR and smaller £10,000 top up at 6% at the SVR.
My question is should I use the £150 from the maintenance charge and council tax to overpay my mortgage before I get used to having the extra money or should I save it and try and clear my loan of £15,000 quciker which I cannot overpay.
I did have debts of £30,000 but will be able to clear half off these with the proceeds from the sale of my flat.
I am worried about interest rates rising. My mortgage will be split into two seperate parts one is fixed at 4.2% for another year at which point it will go to the BMR and smaller £10,000 top up at 6% at the SVR.
My question is should I use the £150 from the maintenance charge and council tax to overpay my mortgage before I get used to having the extra money or should I save it and try and clear my loan of £15,000 quciker which I cannot overpay.
0
Comments
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When you move will you have any emergency savings ? to pay for a new boiler/car etc!
If not then put the money into cash ISA,s until you have 3/6 months of income in savings and then OP the mortgage as you cant OP the loan0
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