Should I pay off my mortgage? Discussion area

booits

Hi everyone, hope you can advise me. I have approx 40k in savings and want to to use it to its full potential. I/we have two properties, one on a 2.5% variable rate repayment with 39k outstanding, currently repaying £300 per month. The other an Interest only mortgage, 2.5% variable rate on 70k, this is split between myself..21k (repayment=£71/month) and my wife the remaining 49k (repayment= £165 /month)( it was the only way we could afford the repayments at that time). My dilema is do I pay off the 38k and convert the other to repayment or leave things as they are and make overpayments on one or the other(s) (allowed overpayments upto £500 per month on each mortgage. No early repayment fees on any)?
Any other suggestions or ideas?
Please help before my brain explodes! :eek:

elsie5_2

Hi I was considering putting £9,000 savings toward mortgage,Ive checked, I dont incurr penalties with the product but I am also looking to move house into an area where properties are more expensive and am concerned that i wont get the same LTV as I did 5 years ago due to tighter lending criteria, although my financial circumstances are the same.im thinking I might need savings to top up what I might loan amount I might get agreed now. Any body consider whether its worth shoring up the cash before kissing it goodbye to the mortgage? Any ideas, sorry if this is a bit base

badobsession81

Weighing up mortgage overpayment vs clearing CCs etc atm and wondering if anyone had views on this.

First instinct was to clear CCs to free up disposable income to be able to fund our wedding in late autumn 2013. But as rates are low at the mo and we want to be able to move house in a couple of years, should we direct some money towards lowering our mortgage (currently more than the value of our house)?

Happy to share details if ppl have views.

Cheers :-)

mrs_traore

hi guys just joined!
i have 5k in a L&G Stock Market linked savings bond, coming up in 1.5 years ........... need to find out its specifics but wondering if you think i should close and pay off my mortgage
i've 78 owed 15k on interest only due for a review in october

my new husband has lost his job, apart from owing the tax man 1k which i should sort out in the next 3 mths, i have no debts.......

thoughts greatly appreciated

i'm just going to email them now for term of exiting

thanks!!

phantomfreckle

hi
I am looking for a good piece of information on Mortgage vs Pension as a saving device to pay of my mortgage. I have £150k mortgage and had be on interest only for years , as It was the only amount I could afford (my excuse) , i have been luck enough to have worked my way up a large company over the last 20 years and have always have a private (company managed) pension which I have been move from 5% to 13% salary sacrifice. I am am now in the 40% tax bracket. My simply mind believe that I am 'saving' more by putting the 8%( difference between 5% and 13%) in to my pension due to the tax breaks that using it to repay my mortgage.
I am open to points of view on this or any good links that will help me understand in a virtual way through dynamic graphs my though process.
I hope i am doing the right this but now I want to stop berrying my head in the sand and know the truth.
thanks
Andy

GregDixon

Hi there, I notice this forum isn't replied to as frequently as in the past, but I am hoping someone will see this and be able to help.

I currently have 1 year left to go on a 5 year fixed rate at 5.23%. I've never been able to overpay in the past 4 years, but finally find myself in a position to do so now.

I owe £92,000, and am allowed to overpay by 10% per year. My question is, is it worth me overpaying now with the current interest rate, or should I look to save the money elsewhere until I remortgage next year ?

Any advice greatly received, thank you experts!

Greg

someday_soon

Hi Greg

If you have more expensive debts clear them first. Assuming you have a rainy day fund, then fill your boots on paying down that horribly high intrest on your mortgage. Maybe join a challenge such as the MFW in 2012 to give you a target to achieve and exceed.

Good Luck

SS

brightside57

Hi

If a mortgage consists of part repayment and part interest only, which is it better to use any lump sums to reduce?

Total mortgage is <£100K, interest rate is 1.49% currently.

Thanks,

Andy

Angie3

:DI have had my mortgage with Nationwide BS for 8 years over 2 properties. They allow overpayments of £500 per month into each mortgage account you have. I use this as a great savings account, offsetting savings against my mortgage. I can withdraw my overpayments at any time with 5 days notice. This has substantially cut down my mortgage period and interest paid. If I do require money for a big unexpected expenditure I know it is there if necessary. I will never move my motgage as it works well for me.

Seyeclops666

I have a current mortgage around £280 K but due to some careful planning and a little luck I have a tracker repayment mortgage on 1.79% (1.29% above Base). As we have put all our money into the mortgage previously and as we live in a rapidly improving bit of London the house price has come up and the mortgage has gone down - leaving us with a house worth £550K with a mortgage of £280K - great lucky for you I hear you say - thanks but we have paid for this through blood sweat, tears and by using our heads!!

In a year or so I will want to move to a more expensive house - I am able to port my current deal (great) but will need to borrow between £200 and £300 K more - almost certainly on a much higher rate than present.

I can't get my head round whether I should pay off more of my current mortgage (with some money we have put aside) or whether we should keep that back to add to the deposit for the next house. If we pay off more of this Mortgage we leave less to port on the current low rate and may have to borrow more on the higher rate but in the meantime we will have paid off more of our mortgage thereby reducing it further??!!

Your thoughts are most welcome clever peeps!!