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Securing the future
MATCHMAN_2
Posts: 1 Newbie
Planning to sell our house which is worth £255k approx and move to a smaller property of approx £200k.
Our current mortgage is £77k and we have a fixed rate which doesn't expire for another 4 years. To pay off now would mean we incure an early redemption fee of £3k.
Our aim, basically, is to move to a smaller property, reduce monthly outgoings freeing up more money and also to secure our future giving us a 'nest egg' in later life.
We have considered paying off the mortgage, then just getting a smaller mortgage starting from a fresh, but feel it may be wrong to throw away money on the early redemption fee.
The alternative option, is to continue paying this mortgage for 4 years until the fixed rate expires. Maybe we could invest some of our equity to compensate for the interest we will pay on the mortage. But where to invest it? Is it better to just pay the early redemption fee and be done with it?
We do not want anything risky where we could loose the money but obviously want to make as much profit as possible.
Basically, we are in a strong position regarding a fair bit of equity. What is the best way to make this money work for us?
To conclude we feel we are at a crossroads, I want to move in the right direction and not regret making a decision now that we will regret in 20 years time.
We could go to an independent financial advisor, but feel they are all out to line their own pockets. Sorry to judge like this, just remembering past experiences!
What do you think?
Our current mortgage is £77k and we have a fixed rate which doesn't expire for another 4 years. To pay off now would mean we incure an early redemption fee of £3k.
Our aim, basically, is to move to a smaller property, reduce monthly outgoings freeing up more money and also to secure our future giving us a 'nest egg' in later life.
We have considered paying off the mortgage, then just getting a smaller mortgage starting from a fresh, but feel it may be wrong to throw away money on the early redemption fee.
The alternative option, is to continue paying this mortgage for 4 years until the fixed rate expires. Maybe we could invest some of our equity to compensate for the interest we will pay on the mortage. But where to invest it? Is it better to just pay the early redemption fee and be done with it?
We do not want anything risky where we could loose the money but obviously want to make as much profit as possible.
Basically, we are in a strong position regarding a fair bit of equity. What is the best way to make this money work for us?
To conclude we feel we are at a crossroads, I want to move in the right direction and not regret making a decision now that we will regret in 20 years time.
We could go to an independent financial advisor, but feel they are all out to line their own pockets. Sorry to judge like this, just remembering past experiences!
What do you think?
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