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overpay OR save for next deposit
Kaust
Posts: 1 Newbie
Hi All
Bought a house last autumn on 2 years fixed mortgage at 5.6%. This year we can overpay our mortgage on a monthly basis. But, we are planning to move to a bigger house, hopefully next year.
So, should I over pay existing mortgage or save that money for the down payment of the new house to get a better interest rate then.
Please can someone advise? we are totally noobs when it comes to finances, mortgages etc.
Many thanks!
Bought a house last autumn on 2 years fixed mortgage at 5.6%. This year we can overpay our mortgage on a monthly basis. But, we are planning to move to a bigger house, hopefully next year.
So, should I over pay existing mortgage or save that money for the down payment of the new house to get a better interest rate then.
Please can someone advise? we are totally noobs when it comes to finances, mortgages etc.
Many thanks!
0
Comments
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Only save the money if you can attract a higher interest rate than 5.6% (which you won't be able to realistically).
Paying off the mortgage will in effect give you a higher deposit for your next house as you'll own a higher percentage of equity in your current property to use as the deposit for your next house
0
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