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Comments

  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    quintwins wrote: »
    then your money would be going to pay someone elses mortgage
    I don't see how, when the rent is less than the interest on the mortgage.

    It doesn't matter to the OP whether their money is "wasted" on rent or "wasted" on mortgage interest.
  • quintwins
    quintwins Posts: 5,179 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    I don't see how, when the rent is less than the interest on the mortgage.

    It doesn't matter to the OP whether their money is "wasted" on rent or "wasted" on mortgage interest.

    I'm sure they would rather have something to show for there savings at the end rather than hand it all over to the bank and start again, they will decide whats best for them but i was just saying what i would do in that situation.
    DEC GC £463.67/£450
    EF- £110/COLOR]/£1000
  • Lisa1978
    Lisa1978 Posts: 317 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Thanks everyone for your thoughts. Just to clear up a few items :

    JimmyTheWig : Mortgage is repayment, £595/month @ 4.99%. Yes we have approx 22years left. I have tried for a better deal but whilst in NE this is proving difficult. Any suggestions?

    SaverBuyer : We were fortunate to receive a large lump sum on the death of a relative, which is why the amount is much more than we expected to have saved by now.

    CatBlue : I've already thought about the maternity process and work etc. I have a spreadsheet drawn up for same. I am fortunate in that my mother and sister are both willing to assist with Childcare. I 100% expect (unless something unexpectedly happens to me) to go back to work after 6-9months.

    Thanks.
  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Lisa1978 wrote: »
    The mortgage at the mo is £595 plus fees/rates = £700/mth. In the area we are looking to move too we can rent a 3bedroom house for £500/month
    Lisa1978 wrote: »
    JimmyTheWig : Mortgage is repayment, £595/month @ 4.99%. Yes we have approx 22years left. I have tried for a better deal but whilst in NE this is proving difficult.

    These two work out exactly the same value.
    I work out that from your £595 a month mortgage repayments, £395 is interest. That means your mortgage balance will be reducing by £200 a month.
    So the cost to you of living there is £500 a month (£700 less the £200 you gain from).


    So either sell and rent or stay put. Do whichever you feel happiest doing.
  • Lisa1978
    Lisa1978 Posts: 317 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Thanks JTW :):)
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