Should I borrow back all my overpayments?

The_Wiggles

I am nearly there.....

I copied my figures from a previous post
Jan 2010 £114600
Jan 2011 £85798
Jan 2012 £71195
June 2012 £41221 (£15k given to me by my parents)
August 2013 £23000
April 2014 £6621........2 mortgage payments to go (includes last bit of freelance money going in)

My big question is we would really like to start saving now so we could go on a world trip with the children. What happens when I pay that last installment? Should I leave some money in the mortgage so I can access it should I need to borrow some back? I have heard of people taking their overpayment out and putting it in a high interest account (do they exist?).

elantan

I think it depends on what your rate is and how high the interest rate is that you would get

Do you have to travel right now though ? Could you wait for another year and have some savings behind you ?

Goldiegirl

You'd need to speak to your lender to see if it is possible to withdraw money from your mortgage.


There's new regulations just coming in that cover things like affordability, so my feeling is that you wouldn't be able to just withdraw money, you'd have to have to apply for a further advance on the mortgage, and be accessed for affordibilty, sustainability, and probably re credit scored, and possibly have the house re-valued.


It's been 5 years since I last worked in mortgages, so I'm out of date with things now, maybe it'd be worth posting your query on the mortgages and endowments section of the board, to get the latest advice.