Dilemma / Advice

all4one

Ladies / Gents

I'd like your opinion on my situaition. I decided last year I wanted to be mortgage free...mortgage then was 70k its now down to 50k through overpayments - I've worked out I can be mortgage free in 2 years time (I'll be 39years old).

BUT, in this economical climate I wonder if now is the time to start saving money in case houses really do drop and I can put a deposit on a house which I can rent out and eventually become my pension?

One worrying thing is that the company I work for has recently been taken over and I'm worried that I may become surplass to requirements (kicked out), if I was to take another job I would be sure to take a 20k drop in salary as I'm overpaid (Shhh !!)

So question is should I continue to overpay, save or a mixture of both?
Ill also receive 10k from a savings plan later this year so not sure where I should put that?

Thx in advance. :beer:

StuartGMC

May we assume you have your rainy day fund of 3-6 months income already set aside, especially noting your concern over job security?

If you wish to retain the cash for possible use, then you have some choices; fill your ISA, get the best savings rates etc or, if you are able to change mortgage consider offset so this cash works for you on reducing interest on the present mortgage but is available if you need it.

Conversely, you are able to clear £25k pa in two years. Why not clear the mortgage ASAP as it will only take you a few months to gather a 5% deposit on another place as you won't be paying out and the house you are in is all yours?

I'd check on the investment boards regarding recommendations on BTL vs investments in the markets etc.