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Newbie looking for advice............
dell33
Posts: 78 Forumite
I have been lurking here for a while, finally got the courage to post.
I am a debt free wannabee and even though we have a good income at the moment and no trouble meeting our repayments I am self employed and feel my work will dry up in the next year or two and want to reduce our repayments by as much as possible over the next two years.
Debt Situation
Mortgage 120,000 left & 14 years, repayment 1071 per month. Apr 5.1%
Add on to mortgage 35,000 left & 17 years, repayment 270 per month. Apr 5.1%
Car Loan 12,000 left, 4 years & repayment 270 per month. Apr 5.1%.
we have savings of 40,000 which are making us a return of about 3.5% pa.
If all stays well with my work situation we hope to bring our savings up to 90,000 over the next two years.
Forgot to say our mortgage is fixed and we have another 6 years at the fixed rate.
I want to start bringing down our debt level, my plan is to clear add on mortgage & car loan by christmas does allowing up almost 6,500 a year.
whereas my husband wants to continue saving for the next 2 years and maybe then clear our mortgage or maybe have one year left and thus freeing up 13,000 in repayments, we would then only have one year of car loan left and would manage to just pay the add on mortgage. Then if my work dried up we would be able to manage on one income.
This is really dragging me down, working out figures, to know what to do best and if my work dries up before the two years.
Husband feels that we are making a return on our savings and that our interest rate is rather low.
at christmas it will take roughly 45K to clear car loan and add on mortgage which will free up 6.500 a year. Husband reckons that if we use 45k from our savings and only give us an extra 6.5K a year that it will be almost 8 years before we are up any money.
so confused so looking for some advice. Reading back over my post it is a bit rambling.
thanks for taking the time to read.
I am a debt free wannabee and even though we have a good income at the moment and no trouble meeting our repayments I am self employed and feel my work will dry up in the next year or two and want to reduce our repayments by as much as possible over the next two years.
Debt Situation
Mortgage 120,000 left & 14 years, repayment 1071 per month. Apr 5.1%
Add on to mortgage 35,000 left & 17 years, repayment 270 per month. Apr 5.1%
Car Loan 12,000 left, 4 years & repayment 270 per month. Apr 5.1%.
we have savings of 40,000 which are making us a return of about 3.5% pa.
If all stays well with my work situation we hope to bring our savings up to 90,000 over the next two years.
Forgot to say our mortgage is fixed and we have another 6 years at the fixed rate.
I want to start bringing down our debt level, my plan is to clear add on mortgage & car loan by christmas does allowing up almost 6,500 a year.
whereas my husband wants to continue saving for the next 2 years and maybe then clear our mortgage or maybe have one year left and thus freeing up 13,000 in repayments, we would then only have one year of car loan left and would manage to just pay the add on mortgage. Then if my work dried up we would be able to manage on one income.
This is really dragging me down, working out figures, to know what to do best and if my work dries up before the two years.
Husband feels that we are making a return on our savings and that our interest rate is rather low.
at christmas it will take roughly 45K to clear car loan and add on mortgage which will free up 6.500 a year. Husband reckons that if we use 45k from our savings and only give us an extra 6.5K a year that it will be almost 8 years before we are up any money.
so confused so looking for some advice. Reading back over my post it is a bit rambling.
thanks for taking the time to read.
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The first thing you need to check out any early redemption penalties.If you've have not made a mistake, you've made nothing0
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