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Next step on the ladder.. Save or pay off existing mortgage?
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Whoknowskt89
Posts: 262 Forumite


Hi all!
I'm 3 pay days away from being debt free and wondering how best to go around selling my flat and buying a freehold house.
I've got just shy of 3 years left on my fixed mortgage, currently just shy of £68k remaining. My regular payments are £328.81 but I overpay as I didn't like the odd figure (£340 so not much but all helps)
Flat worth: £110k
Mortgage: £68k
Equity: £42k
Mortgage: 3.75% fixed until 31/12/2019, 10% overpayments allowed a year without fees
I'm looking at moving out of the area I'm in and houses I'm looking at vary between £140k and £195k though I don't think I'll quite manage the top end!
Once my debt is gone, I'm looking at saving between £400 and £600 a month and wondering what is best. I know I'll need money for solicitors, estate agents, moving costs etc.
Should I split it so that:
£100 extra to mortgage every month
Rest to savings
Or all to savings
Or another option I haven't thought about?
I'm currently on £29k, I'm 27 and have a decent work pension scheme. Looking to move sometime after 2020. Live alone with 4 cats and who knows how many tropical fish!
Thanks
Any advice would be highly appreciated!
I'm 3 pay days away from being debt free and wondering how best to go around selling my flat and buying a freehold house.
I've got just shy of 3 years left on my fixed mortgage, currently just shy of £68k remaining. My regular payments are £328.81 but I overpay as I didn't like the odd figure (£340 so not much but all helps)
Flat worth: £110k
Mortgage: £68k
Equity: £42k
Mortgage: 3.75% fixed until 31/12/2019, 10% overpayments allowed a year without fees
I'm looking at moving out of the area I'm in and houses I'm looking at vary between £140k and £195k though I don't think I'll quite manage the top end!
Once my debt is gone, I'm looking at saving between £400 and £600 a month and wondering what is best. I know I'll need money for solicitors, estate agents, moving costs etc.
Should I split it so that:
£100 extra to mortgage every month
Rest to savings
Or all to savings
Or another option I haven't thought about?
I'm currently on £29k, I'm 27 and have a decent work pension scheme. Looking to move sometime after 2020. Live alone with 4 cats and who knows how many tropical fish!
Thanks
Any advice would be highly appreciated!
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