starting to see the light at the end

ard123en

way back in nov 2006 we borrowed 100k for our joint house move :eek:

since then have been making some overpayment each month and this has snowballed so much that with 17years 8 months left we have just dropped below the 20k mark :j

Im wondering now should I take a massive hit in savings and pay the whole thing off ( this will leave me with no reserve ) or carry on as we are and if we stick to plan will be gone in 2 years

Also as this is not our forever home will be doing one last move how do providers view the fact you have been overpaying when you come to ask for a second mortgage ?

Goldiegirl

I would say that, in the past lenders didn't take into account overpayments on the current mortgage.

However, new rules around affordability have come in, and they do look at all outgoings, so it might be a benefit to have paid more a month than you needed too.

I'd suggest that you post your question on the Mortgages and Endowments forum. There are mortgage brokers who post on there, who would have information about this.

Suarez

What is the interest rate on the mortgage? If it is less than savings I would not bother overpaying and earn more in savings interest.

edinburgher

I would usually agree with Suarez' thinking, but as the OP has less than 20% equity to pay off, I'd be tempted just to pay it all off and be done with it.

That said, they've also mentioned that this isn't the forever home. How soon do you think you're likely to move? If it's in the next year or two, you may be just as well hanging on to the cash to smooth any bumps when remortgaging.