increase mortgage vs not increase

bike_saving_expert

hi

Just wanting some asvice regarding my mortgage. whether to increase keep things the way they are or perhaps any other options. so i have a 30 year mortgage on a 151k house. My parents helped me out with 100k as they wanted to invest in property. However on sale of house they expect their equity at purchase to be returned (not all mine). So this is my dilemma do i try to go mortgage free and overpay as much as i can or try to extend mortgage. Mortgage is now 37k as i already over payed maximum amount for this year (10%) of mortgage. In terms of income the banks think it is 15k of provable income but when things like additional pay bonus and matched betting winning taken into account and second job(zero hours contract) i am earning 20k. On top of that i have 2 spare rooms in house which i can reant out for tax free ammount 4250 when they are finsihed (nearly there). So people ideas thoughts?

HappyMJ

Banks do not take matched betting profits into account.

They may even use it as a reason to not give you a mortgage as they'll take the expenses out but not allow you to include your winnings to offset the withdrawals from your bank account.

Personally I'd save the excess and pay the mortgage off over as long a period as possible.

You never know when a really good matched betting opportunity arises and you don't have the cash to jump in as you've paid it into the mortgage and it can't be retrieved. I've been placing lay bets valued in the thousands of pounds over the last few weeks on the world cup matches. If I had paid that off my debts I wouldn't have been able to do them.

Lodgers are a lot of trouble....ask yourself if it's worth it first.

bike_saving_expert

this is the problem im acquiring thousands in my accs which i get 4% interest on.

HappyMJ

bike_saving_expert wrote: »

this is the problem im acquiring thousands in my accs which i get 4% interest on.

Do you have a problem with that? I'd stick it all in Betfair and use it as and when for lay bets. Doesn't earn interest but it can just stay there and earn money when needed. I currently earn about £2,000 per MONTH doing matched betting (but I do spend a lot of time on it and it is quite boring at times) and it all just stays in Betfair. In the many years I've had the account I have not withdrawn and only ever deposited the first time and have never deposited again.

Mortgage interest is very low so it's a debt worth keeping and not paying off. In an emergency (such as an injury causing loss of job/income) you will have thousands in the bank and no need to take out high interest credit cards to be able to pay the bills each month.

Thrugelmir

What are your longer term plans? That's the basis on which to make decisions.