31yo with mortgage and savings. Is there a better way of doing this?

Skintsaver · 9 October 2021 at 9:44AM

Hello, I'm currently on a tracker with nationwide 1.39% I expect to be happy living in my home for atleast the next 3 years possibly longer. I think interest rates can and will go up very soon.

So I'm looking to fix I currently have 110k remaining on my mortgage 24.9 years remain paying 450pm. I've never over paid😬due to wanting to have 20k in the bank, which I have now due to receiving some inheritance. Just brought a new car too so can't see myself having any hughe expenses for a while. Though of course possible.

I still have 30k in the bank. I wish to keep 10k in a easy access/current account, 10k in a year fix account the. Next 10k to.use on my mortgage. If anyone can recommend a better way of using saving accounts please do.

I've looked at switching my mortgage to a nationwide fix using 9k to take off the mortgage debt. And the remaining 1k for the product fee. This will move to a 24y term with paying £391pm. After 5 years my debt would be 81700k. I also plan to over pay too £600 so an extra £209. This would knock nearly 9 years off if the interest rates never changed. I also plan to pay off my mortgage with some one off payments once a year if my money in bank accounts ever are over 20k say in April.

I'm on around 30k py and 31 and hope to be mortgage free by 45. Unless I decide to move house then at that point I'd look at my fugures again. 45 was achievable before my divorce!

Questions does this sound reasonable?

Is there a better way of utilising my 30k?

When do you think interest rates may rise?

Am I able to access the overpayments with nationwide if required? By a payment holiday or withdrawing (if this is the case I would look to overpay more)

How easy is it to port the mortgage?

happymum37 · 10 October 2021 at 11:45AM

Mmmm. Do you have / plan children?
What's your pension like at the moment?

With mortgage rates being so so low I'm all for over paying the pension at the minute.
X

Skintsaver · 15 October 2021 at 5:02PM

I have a 6yo son. Agree about the pension. I'm tupeeing to a new firm next April and we should receive an improved pension. What the figures are im not sure. I'd like to think I could become pension free by around 45 still. And by what I save in mortgage payments at that time becomes partly a pension pot.