6yrs 11mths left on interest only - advice please

midebt

Imma_Number wrote: »

Your interest only of £350 + your budget of £640 comes to £990.

In order for your mortgage to be paid at the end of term you'll need to match the repayment amount of £1,268 (assuming interest rates don't rise)

That's an extra £280 pcm to find, every month.

but...... if we sold and bought a downsize for 75'000.00 and had a 50'000 mortgage for 7yrs 6mths ...what would the repayments be for that .....??? thanks ( the remaining 25'000 would be equity deposit ) ??

ValHaller

midebt wrote: »

but...... if we sold and bought a downsize for 75'000.00 and had a 50'000 mortgage for 7yrs 6mths ...what would the repayments be for that .....??? thanks ( the remaining 25'000 would be equity deposit ) ??

You need this http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

angelsmomma

midebt wrote: »

but...... if we sold and bought a downsize for 75'000.00 and had a 50'000 mortgage for 7yrs 6mths ...what would the repayments be for that .....??? thanks ( the remaining 25'000 would be equity deposit ) ??

That is only assuming that you will get the full £130000 when you sell and not really factoring the costs involved in buying and selling.

To sell you will have estate agents and solicitors fees, then fees to buy which includes surveys, solicitors fees and any fees on any extra reports that may be needed by the mortgage provider after the survey. Plus the mortgage itself could have fees attached even if you don't use a broker.

You could end up no better off than you are now. The best advice is to overpay as much as you can from now.

midebt

a big thanks for all the replys ....

you have given us enough to work and plan ahead with....

opinions4u

midebt wrote: »

a big thanks for all the replys ....

you have given us enough to work and plan ahead with....

If you do get reincarnated, please plan ahead a few years sooner next time!

silvercar

Being we are on MSE, you could use the MSE overpayment calculator.

http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator#result

A 90k mortgage at 3.5% with a £650 overpayment each month would leave you with £17,900 outstanding at the end of 8 years. When you think that moving will cost you a few thousand, it would be far better to aim to pay down this mortgage.

ValHaller

silvercar wrote: »

Being we are on MSE, you could use the MSE overpayment calculator.

http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator#result

A 90k mortgage at 3.5% with a £650 overpayment each month would leave you with £17,900 outstanding at the end of 8 years. When you think that moving will cost you a few thousand, it would be far better to aim to pay down this mortgage.

Yep., and £10,000 lump sum on retirement and the shortfall is £7,900. This is looking doable with a fair wind.

Imma_Number

silvercar wrote: »

Being we are on MSE, you could use the MSE overpayment calculator.

http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator#result

A 90k mortgage at 3.5% with a £650 overpayment each month would leave you with £17,900 outstanding at the end of 8 years. When you think that moving will cost you a few thousand, it would be far better to aim to pay down this mortgage.

I don't wish to be a party pooper but 90K @ 3.5% is £263 pcm. £350pcm is more like 4.69% which with a £640 pcm overpayment leaves about 26K remaining after ~7yrs and ~15K after 8yrs.

midebt

Imma_Number wrote: »

I don't wish to be a party pooper but 90K @ 3.5% is £263 pcm. £350pcm is more like 4.69% which with a £640 pcm overpayment leaves about 26K remaining after ~7yrs and ~15K after 8yrs.

thanks ...bur 26k ...at the end is better than owing 90k ...dont u think...i feel so much better after this discussion......6.5 yrs of hard slog seems like a puff of wind ...... thanks for this advice

midebt

our plan is to sell the property and buy a more affordable home - so this is the way forward ....and have a more reasonable mortgage of apprx 50/55'000 over the remaining working yrs of 7.

our home will be put on the market asp ....just gonna get the paint out and spruce it up a bit more ....


i will keep coming back with updates and questions so please watch this space for more questions and thanks for all the replies xx