Overpaying mortgage - what happens if we want to buy a bigger house?

rec0286

Hi everyone

I've just edited this as I realised why I was confusing myself in my original question and I can't see how to delete a post completely - oops! However, now I've realised where I was going wrong, are there any downsides to us overpaying the mortgage when we are looking to likely move to a bigger and therefore probably more expensive house in a few years (this is our first home and we love it but it's not big enough if we start a family)? We want to partially save in a 5% regular saver where the max is £250 a month savings, then put the rest towards paying down our fixed term mortgage (2.54%). Is this the best tactic for building up a big deposit/equity for when we (probably) upsize? Is there anything I'm missing?

Thanks

chelseablue

That's what we're going to be doing


We want to move in about 6 years and want to mortgage down as low as we can before we have to borrow more to move.

Thrugelmir

Doesn't matter whether the money comes from savings or equity to help you move further up the ladder. Remember you may need to find hard cash to supplement your deposit on exchange of contracts. Having everything tied up in equity won't be of any use.

rec0286

Thank you both for replying.

Thrugalmir, by the cash do you mean the sort of fees we paid buying the house first time around? We plan to split mortgage overpayments and savings rather than all eggs in one basket unless mortgage overpayments are a bad idea for first home.