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Preparing for mortgage during full time studies
msha
Posts: 6 Forumite
I am planning on moving back to full time studies in 2016. I am currently full time employed. My mortgage is 1 year old now, and is up for renewal in another year. I am able to save about £2000 per month. I am unable to decide if:
1. I should overpay my current mortgage; OR
2. Save as much as possible, so I have money to pay monthly mortgage payments during the 4 years of full-time studies that starts in Oct 2016.
I approached a mortgage advisor - one refused to reply to my email, another said they don't deal with such situations - they only help with new mortgages (surprise surprise!).
Any advice is appreciated. Thanks in advance!
1. I should overpay my current mortgage; OR
2. Save as much as possible, so I have money to pay monthly mortgage payments during the 4 years of full-time studies that starts in Oct 2016.
I approached a mortgage advisor - one refused to reply to my email, another said they don't deal with such situations - they only help with new mortgages (surprise surprise!).
Any advice is appreciated. Thanks in advance!
0
Comments
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If you take option 1 how are you going to cover the mortgage for the 4 years study?0
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If I arranged your current mortgage, I'd be more than happy to help you plan for the future. If you are approaching third parties, they are probably too busy with paying work to spend time with you.
The question surely revolves around what income you are going to have from 2016?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
If you take option 1 how are you going to cover the mortgage for the 4 years study?
If I followed Option 1, then:
1. I would overpay about £1000 now until Oct 2016
2. Save £1000 per month to be able to pay monthly mortgages during the 4 years of study (and possibly will have to move to Interest only to be able to afford this)
Under Option 2:
- I could move to Offset mortgage in Feb 2015, which means the savings I have will save my interest; however, as these savings deplete due to mortgage payments during the studies; the interest charges will go up.... so not a great option I guess.0 -
kingstreet wrote: »If I arranged your current mortgage, I'd be more than happy to help you plan for the future. If you are approaching third parties, they are probably too busy with paying work to spend time with you.
The question surely revolves around what income you are going to have from 2016?
Won't have any income during full time studies. My tuition and living expenses will be paid via student funding.0 -
Save the cash. The overpayment option may leave you exposed.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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