Mortgage advice required.
Discussion
Morning all,
I’m after some mortgage advice. I am in the fortunate position of having saved enough to pay off my mortgage. I have been overpaying the mortgage for the last 2 years and this has dramatically reduced the amount I owe. The balance on my account is £15K and I have slightly more than this is in cash savings. The remaining mortgage term is approximately 21 years. I was lucky enough to take out the mortgage 4 years ago just before the bubble burst and as a result secured a very good deal (Barclays Base Rate + 0.19% for the full term, no overpayment charges, no early redemption charges).
With interest rates what they are I am considering taking the mortgage down to around £5K and just letting it run for the foreseeable future. The monthly payments will be very low and it’s probably the cheapest money I will ever borrow. Being mortagage free appeals but keeping the mortgage going does allow me to borrow more money against my home in the future should I want to upgrade the kitchen / change the bathroom suite, etc.
What would you do?
I’m after some mortgage advice. I am in the fortunate position of having saved enough to pay off my mortgage. I have been overpaying the mortgage for the last 2 years and this has dramatically reduced the amount I owe. The balance on my account is £15K and I have slightly more than this is in cash savings. The remaining mortgage term is approximately 21 years. I was lucky enough to take out the mortgage 4 years ago just before the bubble burst and as a result secured a very good deal (Barclays Base Rate + 0.19% for the full term, no overpayment charges, no early redemption charges).
With interest rates what they are I am considering taking the mortgage down to around £5K and just letting it run for the foreseeable future. The monthly payments will be very low and it’s probably the cheapest money I will ever borrow. Being mortagage free appeals but keeping the mortgage going does allow me to borrow more money against my home in the future should I want to upgrade the kitchen / change the bathroom suite, etc.
What would you do?
Edited by Ecosseven on Sunday 12th September 08:16
I'm in a similar position. I've decided to let my mortgage run for a bit. I like having nest-egg/rainy day money that I can get at straight away "just in case"
I would like to be mortgage free but also the feeling I could clear my debts off at any time is very comforting.
I would like to be mortgage free but also the feeling I could clear my debts off at any time is very comforting.
Edited by chard on Sunday 12th September 10:37
Ecosseven said:
Morning all,
I’m after some mortgage advice. I am in the fortunate position of having saved enough to pay off my mortgage. I have been overpaying the mortgage for the last 2 years and this has dramatically reduced the amount I owe. The balance on my account is £15K and I have slightly more than this is in cash savings. The remaining mortgage term is approximately 21 years. I was lucky enough to take out the mortgage 4 years ago just before the bubble burst and as a result secured a very good deal (Barclays Base Rate + 0.19% for the full term, no overpayment charges, no early redemption charges).
With interest rates what they are I am considering taking the mortgage down to around £5K and just letting it run for the foreseeable future. The monthly payments will be very low and it’s probably the cheapest money I will ever borrow. Being mortagage free appeals but keeping the mortgage going does allow me to borrow more money against my home in the future should I want to upgrade the kitchen / change the bathroom suite, etc.
What would you do?
I would try to invent time travel, go back in time, and not pay down your mortgage. I’m after some mortgage advice. I am in the fortunate position of having saved enough to pay off my mortgage. I have been overpaying the mortgage for the last 2 years and this has dramatically reduced the amount I owe. The balance on my account is £15K and I have slightly more than this is in cash savings. The remaining mortgage term is approximately 21 years. I was lucky enough to take out the mortgage 4 years ago just before the bubble burst and as a result secured a very good deal (Barclays Base Rate + 0.19% for the full term, no overpayment charges, no early redemption charges).
With interest rates what they are I am considering taking the mortgage down to around £5K and just letting it run for the foreseeable future. The monthly payments will be very low and it’s probably the cheapest money I will ever borrow. Being mortagage free appeals but keeping the mortgage going does allow me to borrow more money against my home in the future should I want to upgrade the kitchen / change the bathroom suite, etc.
What would you do?
Edited by Ecosseven on Sunday 12th September 08:16
You can get a much better return on your money elswhere. Paying down your mortgage is not good use of your spare cash when you have the deal you do.
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