More mortgage debt?

John424

Hi,

What do people consider a lot of debt?

Household annual income £98k + £14k annual bonus (consistent), mortgage £186k on house £350k, 8.5 years into a 25 year mortgage. We'd quite like to trade up, so say another £100k debt my thoughts are;

Yes - Another £100k at an historic low rate lock in would cost at 3%, £3000k per year, easily manageable (excludes capital though)

No - Am I barking, We've got down to a multiple of 2,do I really want to push myself back years to only struggle if rates go up?

Any thoughts?

John

Thrugelmir

Very much a personal decision. No one can predict future circumstances. Income, health, relationships, interest rates etc. What may be a good idea today but not be tomorrow.

Sometimes rather than rushing along at a fast pace. Stand back and take time to think matters through. You've a good income so are in the position of overpaying your current mortgage and building equity. While you do so.

John424

As I stand back though, I trip over the kids or some of their toys!!

Seriously though, the last of our two kids is almost out of private nursery into the 'free'er' school system so that'll save 300 quid a month. Our LTV is 60%, I just want a bigger 3 bedroom house with some off road parking or would we move to that and then be looking at the next bigger house?

CountingPenniesClaire

Agree with Thrugelmir and would only add that it is worth bearing in mind mortgage period. Despite the fact that we'll all likely be working until we drop , lenders can be very tight on this. When oh and I remortgaged with a different provider (5 year fixed offset) just over a year ago even, though he wouldve only been 67 at final payment of mortgage (based on a 25 year period) they insisted we remortgage over a 23 year period. We had 37% equity in the property at the time, excellent credit records and a plan for early repayment via offset. It forced the monthly repayments up, which we could do comfortably - but we'd have preferred to be putting that extra money in the offset. I know that there are a plethora of other circumstances but thought age and peak earning capacity is worth a mention. If you are going to upsize best it may be better to do it earlier than later.

Claire

John424

Thanks for your comments. I had not thought about my age. I'd like the additional mortgage paid up at the same time, so 16 years, I'll be 62. It's an ask I have to confess, I need a long lock in at low rates else I could get burnt. There could never be this moment again to lock in at such low rates, if only the lenders were lending....

amnblog

Lenders are lending.