Mortgage Question

ledieu

Hi everyone I'm new to the forums and looking some advice or pointers if possible.

In December 2013 I bought an apartment, a repossesion at 52k. I got my mortgage from my bank for
20 years at 44k with rates of 4.29%. I pay back £350 a month, could pay more if I had to. The total
amount I will have to pay back is 66k. There are no early repayment charges. I do not plan on keeping
this apartment, I plan on selling it in a few years. Recently one beside me went for 78k.

I have 9k in savings. No credit cards or other debts and I earn 22k after tax. I was wondering if
I should take 7 or 8 k of my saving and use it to pay of my mortgage? I'm not sure if this is a good idea
or not as will it be worth it if I plan on selling this place in a few years? Another mate also
suggested trying Santandar for a better mortgage.

If anyone has any suggestions or advice I would be more than thankful.

anselld

You should probably keep a reasonable size buffer of savings rather than put it all into overpayments. £9k seems reasonable - make sure you are getting at least 3% interest on that.

Yes, you could probably reduce your mortgage rate significantly by remortgaging, but keep an eye on fees.

ledieu

Cheers mate

jackomdj

As above, I would also overpay monthly if you can and if your mortgage rate is higher than the rate you would get if you kept your savings.

The more you overpay the less interest you pay and also you owe less on the mortgage so when you sell you will get more back rather than paying off mortgage.

densol_2

You are paying quite a high rate of interest as the loan to value was quite high. The more you reduce the debt to the value ( preferably to under 60%) the cheaper the mortgage deals become

ledieu

The biggest problem in the first place for me was getting a mortgage in the first place. As the property was a repossession, I was getting it at 44k. Most banks would not give me LESS than 50k. I switched banks from my own to Danske who were happy to go below 50k. Some !!!!er bid and put me to 52k buying price. And the process with them at the time was quick so I was happy to stick with them for a year or so, I was more relived to get this piece of property as I was fed up renting. Most other mortgage offers were equally unimpressive. Been having second thoughts about selling recently, so most likely going to hunt down a new mortgage. I was told Santandar are my best bet. Meeting them tomorrow to have a chat and see what they can offer me.

Anyone any advice on where or what I should be looking at for a new mortgage?