5 Year Deal??

homer_j_3

get used to having less money, if you do a flexible option, you can always pull back on the overpayment should you need to.

Would it be a nice feeling to be mortgage free before you are 50?

BruTamUK_2

homer_j wrote: »

get used to having less money, if you do a flexible option, you can always pull back on the overpayment should you need to.

Would it be a nice feeling to be mortgage free before you are 50?

Definately! Thats my plan if the interest rate allow it!

cells

BruTamUK wrote: »

Hi.

Myself and my wife have just sold our 3 bed semi to first time buyers after just 5 days on the market for £147000. How lucky is that! We have bought a 3 bed detached for £198000. We currently owe £88000 on our mortgage which is going to be paid off. Overall after paying for the fees of moving we are taking out a £144000 Accord mortgage for 27 years fixed at 5.39% for the first 5. Our payments are £854p/m. Our joint income is £45000.
With the current market as it is, is moving house a wise move?
Bruce.

hello,

have you actually sold your current 3 bed semi? and got the 147K?

you say you sold a 3bed semi for a 3bed detached? is the detached bigger? better? more detail please.

also details on your current mortgage , interest rate, can you over pay, ect

BruTamUK_2

Contracts haven't been exchanged yet, but my buyers have been accepted for a mortgage and the searches/valuation has been instructed.
cant believe how lucky we've been. There are 6 other properties the same on our estate that have been for sale months/years.
Our last two houses have sold in a total of six days!
The detached is in a more desirable area and has the added benefit of en-suite, utility and extensively modernised. We looked at others in the area but this was the best deal by far. Close to my work (no need for a car), and excellent local schools.
Current mortgage is with the nationwide. 5.63% fixed for another 4 years. We looked at porting it, but trying to tie in the further advance to the same term proved difficult. It's worked out cheaper to pay the redemption penalty and shop around for a better mortgage deal.

cells

BruTamUK wrote: »

Contracts haven't been exchanged yet, but my buyers have been accepted for a mortgage and the searches/valuation has been instructed.
cant believe how lucky we've been. There are 6 other properties the same on our estate that have been for sale months/years.
Our last two houses have sold in a total of six days!
The detached is in a more desirable area and has the added benefit of en-suite, utility and extensively modernised. We looked at others in the area but this was the best deal by far. Close to my work (no need for a car), and excellent local schools.
Current mortgage is with the nationwide. 5.63% fixed for another 4 years. We looked at porting it, but trying to tie in the further advance to the same term proved difficult. It's worked out cheaper to pay the redemption penalty and shop around for a better mortgage deal.

how much is the redemption penalty?

well the first question you need to ask yourself is, is the new house worth 55K more than the old house?

if you earn 45K and really try and save you could potentially be mortgage free in 5 years time (after that life would be far easier with no mortgage/rent)

is that not a good option? just do your best to over pay your current mortgage or put into a good savings account and pay off a large chunk in 4 years times when you can.


another thing to consider is, if you move to the new place can you get rid of your car? how much do you save in fuel/insurance/mot/depreciation/ect

BruTamUK_2

cells wrote: »

how much is the redemption penalty?

well the first question you need to ask yourself is, is the new house worth 55K more than the old house?

if you earn 45K and really try and save you could potentially be mortgage free in 5 years time (after that life would be far easier with no mortgage/rent)

is that not a good option? just do your best to over pay your current mortgage or put into a good savings account and pay off a large chunk in 4 years times when you can.


another thing to consider is, if you move to the new place can you get rid of your car? how much do you save in fuel/insurance/mot/depreciation/ect

Yes, I think the new house is worth the extra. Other similar houses on the market in the same area are going for the same price. The price has dropped from £225000 anyway.
Mortgage free in 5 years??????
That sounds good!
Cant see it happening though!
We have both come to the decision though, that over the next 5 years we want to overpay as much as possible to bring the mortgage down.
One car will definately go once we have moved. It's only a 5 minute walk to work for me.
I've just sold my gas guzzling 350z and bought a more economical Golf TDi, so the wifes Micra will be sold once were in the new house.
Happy times!

cells

BruTamUK wrote: »

Yes, I think the new house is worth the extra. Other similar houses on the market in the same area are going for the same price. The price has dropped from £225000 anyway.
Mortgage free in 5 years??????
That sounds good!
Cant see it happening though!
We have both come to the decision though, that over the next 5 years we want to overpay as much as possible to bring the mortgage down.
One car will definately go once we have moved. It's only a 5 minute walk to work for me.
I've just sold my gas guzzling 350z and bought a more economical Golf TDi, so the wifes Micra will be sold once were in the new house.
Happy times!

thats not what i asked you and its not what you should be looking at

it doesnt matter what other houses are going for.

is the extra £55K WORTH IT FOR YOU

if you stay in your current home you could be mortgage free in 5 years if you try hard, 7 years if you just try

if you move into the new one it will take you 10 years if you try hard or 15 years if you just try.

so, is the new house worth another 5Year of very hard saving? ask yourself that before you do anything else.

good luck whatever you do