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Savings and how to prepare for another mortgage
rosak
Posts: 5 Forumite
Hello everyone,
I am planning to buy a bigger house in about 2 years from now.
If I don't change anything, my current mortgage balance (fixed 2.18% SVR, Natwest) in 2 years will be about £138,000 and my house will sell for say £220,000.
That will theoretically leave me £82,000 "cash". I want to buy house for say £400,000.
I already paid off all my credit cards and loans so I'm "clear" now.
I am able to save £2,000 per month from now, towards a new house.
The question is, what will be better to do with that £2,000pm savings:
1. keep that money on my current account
2. make a regular overpayments to my current mortgage (it will not reduce interest now, I'm on fixed rate until 04/2020- 15 months from now)
3. invest that money somehow (how? ISA?)
It's worth mentioning that I'm self-employed, which makes it more difficult to get a mortgage/loan, hence I want to prepare the best I can.
Any advice highly appreciated.
I am planning to buy a bigger house in about 2 years from now.
If I don't change anything, my current mortgage balance (fixed 2.18% SVR, Natwest) in 2 years will be about £138,000 and my house will sell for say £220,000.
That will theoretically leave me £82,000 "cash". I want to buy house for say £400,000.
I already paid off all my credit cards and loans so I'm "clear" now.
I am able to save £2,000 per month from now, towards a new house.
The question is, what will be better to do with that £2,000pm savings:
1. keep that money on my current account
2. make a regular overpayments to my current mortgage (it will not reduce interest now, I'm on fixed rate until 04/2020- 15 months from now)
3. invest that money somehow (how? ISA?)
It's worth mentioning that I'm self-employed, which makes it more difficult to get a mortgage/loan, hence I want to prepare the best I can.
Any advice highly appreciated.
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