HELP!!Overpay mortgage or save for a deposit???

jencolescott

Hey everyone,

Im just looking for a little bit of advice. My current situation is that we currently live in a 2 bedroom semi detached house. We are desperate to move and hope to do so in 2 years time. Or sooner. Our house was bought for £125k and mortgage is currently sitting at £117. We are hoping to sell for close to £122. So are the min we may have around £5k equity. On looking at overpaying we would be able to move in 2 years time if we overpay by £500 per month. This would give us a good deposit. Reduce our mortgage to around £100k. Looking to upgrade to a 4 bed detached for around £185.

My question is would it be best for us to save our deposit seperately or bung every spare bit of cash into our mortgage. Im so confused and absolutely desperate to move. I know alot of new home builders will match 5% of ur deposit.

Thanks

DannyboyMidlands

No idea.

What mortgage do you have?

Where will you be saving?

andy.m_2

a) what is your current mortgage rate?
b) What is the best saving rate you can get.

if a>b pay off mortgage
if b>a save

without this information the answer may be no more accurate than trifle.

Stop being desperate to move, you will make rash decisions that you may well pay for, for a long time.
You say yourself you can move in 2 years so sit it out, prices may rise, fall or collapse in that time.
Also, have you considered putting 500pcm into an account and in 25 months you will have £12k deposit, and a house, a house that you can rent out and recieve an income from, maybe.