We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Moving home- should i pay off debt or have larger deposit
barrys_baby
Posts: 10 Forumite
We're currently in the process of upsizing
Expected equity is £120,000
Minus moving costs, SDLT etc £20,000
Leaves us with £100,000 deposit for the new home
New home is £500,000
I currently have personal loans and credit card debt of £15,000, which im paying off £700 per month
What im struggling with, should we pay off the £15,000 personal debt and put less down (£85,000) for the deposit on the new home?
Summary
Currently paying
Mortgage £1,013 per month
Personal debt £700 per month
Total £1,713 per month
If we paid off debt ive calculated our monthly mortgage would be £2,243
If we kept the debt and the new mortgage we would be paying £2,892 in total
I understand im baking in the personal debt into the mortgage so long term will be paying a lot more, but we're expecting a child and so do think the lower monthly costs for the next two years is worth taking the hit.
My salary is around £80k per year and my partners is £30k
Id be grateful for any advice or general critique of my workings and if theres something im missing.
Expected equity is £120,000
Minus moving costs, SDLT etc £20,000
Leaves us with £100,000 deposit for the new home
New home is £500,000
I currently have personal loans and credit card debt of £15,000, which im paying off £700 per month
What im struggling with, should we pay off the £15,000 personal debt and put less down (£85,000) for the deposit on the new home?
Summary
Currently paying
Mortgage £1,013 per month
Personal debt £700 per month
Total £1,713 per month
If we paid off debt ive calculated our monthly mortgage would be £2,243
If we kept the debt and the new mortgage we would be paying £2,892 in total
I understand im baking in the personal debt into the mortgage so long term will be paying a lot more, but we're expecting a child and so do think the lower monthly costs for the next two years is worth taking the hit.
My salary is around £80k per year and my partners is £30k
Id be grateful for any advice or general critique of my workings and if theres something im missing.
0
Comments
-
I'd pay the debt off, according to your calculations you save £600 a month.1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.6K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.5K Spending & Discounts
- 247.4K Work, Benefits & Business
- 604.3K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards