Mortgage question

Nikk51

Hi - I'm new to this forum and was hoping for some advice.

I currently have a mortgage on my house that I live in. My father died recently which has left my mother in our family home along with her 101 year old mother! Now my mum doesn't want to live in the house as it's too big for her and wants to move into a smaller property, but can't do this while her mother is around as she nurses her etc. My mum and I already have formed a trust and both own her house, so myself and my family will move into her house which doesn't have a mortgage and she'll move into a smaller house also without a mortgage.

So at the moment and this is a sensitive suspect we won't do anything until my mums mum can't be cared for at home, we have no idea how long this may be for.

My question is, I will sell my current home when I move into my
Mums house but don't need another mortgage, so at the moment I've realised I'm paying a mortgage on my house that I don't ever need to own as I already own a house, but don't live in it yet! I would like to reduce my monthly mortgage repayments to free up some capital and pay off a few debts and do some work on the house for when I come to sell it it. I've just come to the end of my 5 year fixed rate mortgage and am not sure what option would be best for me, basically I want to pay as little as possible as I will be selling in the next 5 or so years. I guess what I'm trying to say is I don't ever need to own my current house and want to live in it as cheaply as possible until I come to sell it in the near future. My current house is worth approx £370,000 of which the mortgage is currently for about £260,000.

Hope this makes sense!

Thanks

jackomdj

Personally if you can afford your payments I think you are looking at it the wrong way.

If you pay as much off your mortgage you will be paying less interest on it, which means you will end up with more cash in your bank when you sell.

The other option would be to go for interest only, but you will still owe the full amount when you sell.

Let_Us_See

Nikk51 wrote: »

...................I guess what I'm trying to say is I don't ever need to own my current house and want to live in it as cheaply as possible until I come to sell it in the near future. My current house is worth approx £370,000 of which the mortgage is currently for about £260,000.

Hope this makes sense!

Thanks

Basically, no, it doesn't make sense!

Despite plans for the future and your statement "I don't ever need to own my current home" you obviously do need a current home, and that current home just happens to have a £260,000 mortgage and you are considering additional borrowing. Further, you state that you will probably sell in 5 years time - and this is the home you feel you "don't ever need to own?"

Did you simply mean to post that "you have a house worth £370K with a £260K mortgage and you were seeking to release capital and wished to minimise monthly payments?"

Cornucopia

Sounds like there are two options - change the mortgage to interest-only, if the lender will let you, and/or release some equity when you remortgage.