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Mortgage Advisors Q. Is it worth £760 to create overpayment reserve of 60K? Pls Help
paulcalf_2
Posts: 36 Forumite
Hi I would appreciate any help on this
To cut a long story short it will cost me £760.18 to recreate a £60k overpayment reserve on my Nationwide Mortgage.
So here are other details you may need
Mortgage rate currently 2.5% (2% over Bank of England Base)
Current Mortgage Balance £29K
Current repayment term: 9 years 3 months (Oct 2022)
I'm trying to work out if it makes financial sense for £760.18 to be added onto my mortgage which would then allow me to borrow £60k back in the future at 2.5%.
I don't currently need to borrow the overpayment back but may wish to in the future E.G to use as a deposit on another house.
So does it make sense for me to add £760 to my mortgage balance now, so i have the possibility of low rate borrowing in the future?
Other option would just be to leave my mortgage as it currently is.
Thanks in anticipation of your help
Paul
To cut a long story short it will cost me £760.18 to recreate a £60k overpayment reserve on my Nationwide Mortgage.
So here are other details you may need
Mortgage rate currently 2.5% (2% over Bank of England Base)
Current Mortgage Balance £29K
Current repayment term: 9 years 3 months (Oct 2022)
I'm trying to work out if it makes financial sense for £760.18 to be added onto my mortgage which would then allow me to borrow £60k back in the future at 2.5%.
I don't currently need to borrow the overpayment back but may wish to in the future E.G to use as a deposit on another house.
So does it make sense for me to add £760 to my mortgage balance now, so i have the possibility of low rate borrowing in the future?
Other option would just be to leave my mortgage as it currently is.
Thanks in anticipation of your help
Paul
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