What to do with our money?

Leeharry77

Hi, just after a bit of advice...

Got a part buy/part rent mortgage over 2 years ago in the wife's name as I had missed payments on a loan in 2009 & was refused. I have since taken a voluntary redundancy & have £23k sat in the bank, debt free too.
Are we best to pay this off our mortgage of £31500? Or leave it in a savings account? Would perhaps like to move house once my credit score is better, paying over the odds for this property in my opinion.

In addition to this, my wife also took a voluntary redundancy while on maternity leave & will only be looking for part time employment when she goes back to work in June, so I guess that buying an extra 25% of this property would be out of the question.

Hope someone can help!
Thanks.

ValHaller

Depends on your interest rates. If you get more on savings than you pay on borrowings, then keep it in savings. Otherwise, keep back a little emergency fund and pay the mortgage down. But beware of Early Redemption Charges. As for buying another 25% of the property, you could look at the rent reduction as interest on the money - it might be the best place to put it.

Leeharry77

Think maybe it would be a good idea to pay say £18k off the mortgage & save the rest for fees etc if we move in the future? The interest rate on this mortgage is high because of it being shared ownership. Wish we'd never bought it in the first place but I guess we are on the property ladder if nothing else.
Won't be able to buy another 25% for roughly 2 years until my credit report doesn't show my missed payments on the loan I had.

ValHaller

Leeharry77 wrote: »

Think maybe it would be a good idea to pay say £18k off the mortgage & save the rest for fees etc if we move in the future? The interest rate on this mortgage is high because of it being shared ownership. Wish we'd never bought it in the first place but I guess we are on the property ladder if nothing else.
Won't be able to buy another 25% for roughly 2 years until my credit report doesn't show my missed payments on the loan I had.

Need information. Your interest rate. Your rent on 25% and the cost to buy 25%. If you can buy 25% with your pot, then your missed payments should not come into it.

bigadaj

Also make sure you have some Available cash for emergencies, many have tied up money long term to then have to take expensive short term borrowing.

R_P_W

If I'm reading your post right, you have both taken volunatry redundancy so not in employement at the moment?

If that is the case would you not be better to just hang on to the cash until one of you is earning again?