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  • FIRST POST
    • Captainfox
    • By Captainfox 18th May 19, 9:38 AM
    • 15Posts
    • 2Thanks
    Captainfox
    Overpay mortgage or save to pay off Equity Loan
    • #1
    • 18th May 19, 9:38 AM
    Overpay mortgage or save to pay off Equity Loan 18th May 19 at 9:38 AM
    So Im new to this area and hopefully be completing on a new build by July time.

    Equity loan will stand at around 60k and with the best will in the world Im unsure Id be able to save that much over 5 years, Id say 8K a year would be a reasonably achievable savings figure and potentially more if I got a lodger in over those 5 years.

    Would it make more sense to overpay the mortgage and then look to remortgage at the end of the 5 year term to hopefully pay off the equity loan, or smash away at saving and at worst staircase 10% and then continue saving to staircase the final 10%? Though Ive heard the fees for staircasing can be over 1K?


    Bonus question, for furnishing a two bed semi with a garden that has white goods and carpets fitted, what would be a good budget to look to spend? Would like to avoid charity shops for the main items (bed, sofa and t.v) but also have been looking at sliding mirror door built in wardrobes as another key item for the master bedroom. Spaceslide seem to be a decent company..?
Page 1
    • snickpan
    • By snickpan 20th May 19, 10:25 AM
    • 72 Posts
    • 9 Thanks
    snickpan
    • #2
    • 20th May 19, 10:25 AM
    • #2
    • 20th May 19, 10:25 AM
    staircase? I've had a quick google, to no avail, something about stairs, and some theory on terrorism.
    • snickpan
    • By snickpan 20th May 19, 10:51 PM
    • 72 Posts
    • 9 Thanks
    snickpan
    • #3
    • 20th May 19, 10:51 PM
    • #3
    • 20th May 19, 10:51 PM
    ignoring the staircase question, I'd look at the price of things online, see what you want to buy new or 2nd hand, and see what it costs - failing that, it's quite an open ended question, with lots of variables that only you would know.
    2000
    • AnotherJoe
    • By AnotherJoe 21st May 19, 7:29 AM
    • 14,251 Posts
    • 16,960 Thanks
    AnotherJoe
    • #4
    • 21st May 19, 7:29 AM
    • #4
    • 21st May 19, 7:29 AM
    If I'm right that the equity loan is zero percent for 5 years then it make sense to overpay the mortgage (or save in an account with a higher interest rate), instead.
    In five years time you can calculate what's best in terms of remortgaging.
    A lodger could make a substantial difference to the numbers over 5 years.
    Please dont criticise my spelling. It's excellent. Its my typing that's bad.
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