I have some spare cash pay into mortgage?

[Pesty]

I have 10k ish.

I want to pay it into the mortgage. Won't make much of a dent because I still owe over 100k but it makes more sense than buying more watches

However the mrs says its a stupid idea as it will only reduce the term by a few months?

It makes sense to me as our mortgage is over 5 % and still got about 17 years to go so surely sticking it on the mortgage will pay better than investing?


However I'm a dunce with these things and to be honest don't understand anything money wise.

Advice?

Thanks in advance

[NDA]

What rate of interest are you paying on your mortgage?

What rate of interest would you get on your £10k in the bank?

The answer may emerge from the answer to those two questions......

You may not need to reduce the the length of the mortgage, but it might lower your monthly payments..... I assume there are no penalties or fees charged by paying off a chunk of mortgage.

[Pesty]

I need to read the small print but I requested a no penalties for over payment type thing with the broker.

I hate being thick at finance.

Will check because obviously if there is a fee it may be better in an isa or Tudor pelagos something

[Siscar]

Paying off some of your mortgage is a very sensible thing to do, particularly if you can keep your repayments the same. It can dramatically cut the time before you pay it off because each payment you make is paying off more of the capital and less interest than before so it accelerates the benefit.

Not every lender will let you keep the payments the same, in which case save the difference and every few months pay off another bit. You will end up being mortgage free years earlier.

[Pesty]

Thanks

[Simpo Two]

£10K at 5% for 17 years is - quite a lot more than £10K.

Therefore the maths says pay it off.

[Sarnie]

If your mortgage is over 5% you need to remortgage too it seems!!

[TwigtheWonderkid]

Pesty said:

However the mrs says its a stupid idea as it will only reduce the term by a few months?

She's an idiot. Ignore her and do it.

[TwigtheWonderkid]

Simpo Two said:

£10K at 5% for 17 years is - quite a lot more than £10K.

It's £22,920!

[bigandclever]

Pesty said:

However the mrs says its a stupid idea as it will only reduce the term by a few months?

Your missus is probably very wrong

Try this simple calculator with your numbers ... http://www.moneysavingexpert.com/mortgages/mortgag...

[RocketScience]

OP - do you have an emergency fund saved up?

If you and your partner lost your jobs tomorrow, how would you pay your monthly mortgage fee?

If you already have another £5-10k saved up, then go ahead and overpay the mortgage (as long as they allow you to overpay that much).

I'm currently overpaying £2k+ a month, as when the interest rates start going up, I don't want a massive mortgage debt around my neck. I think a lot of people are so stretched at the moment that people will start losing houses in a couple of years time if they don't have something set aside.

[Oilchange]

Debt accruing interest?

Pay it off.

Simples.

[Sir Bagalot]

RocketScience said:

as when the interest rates start going up, I don't want a massive mortgage debt around my neck. I think a lot of people are so stretched at the moment that people will start losing houses in a couple of years time if they don't have something set aside.

This.

Check you're allowed to overpay. Ask them to leave your monthly payment as it is. Also with most mortgages you're allowed to take back your overpayment in the future with just a phone call

[Pesty]

TwigtheWonderkid said:

She's an idiot. Ignore her and do it.

I said that but she didn't believe me I'll show her this thread

RocketScience said:

OP - do you have an emergency fund saved up?

If you and your partner lost your jobs tomorrow, how would you pay your monthly mortgage fee?

If you already have another £5-10k saved up, then go ahead and overpay the mortgage (as long as they allow you to overpay that much).

I'm currently overpaying £2k+ a month, as when the interest rates start going up, I don't want a massive mortgage debt around my neck. I think a lot of people are so stretched at the moment that people will start losing houses in a couple of years time if they don't have something set aside.

Yeah a few k buffer. Im insured for illness and if I lost my job it would be through redundancy I imagine. We'd cope.

I could always release some assets car/ watches etc etc

Edited by Pesty on Friday 20th September 22:13

[RocketScience]

Sir Bagalot said:

This.

Check you're allowed to overpay. Ask them to leave your monthly payment as it is. Also with most mortgages you're allowed to take back your overpayment in the future with just a phone call

It's a mixed bag regarding getting overpayments back, so please check your own mortgage. I know mine doesn't allow this.

[Pesty]

Thanks for the help guys.

Just checking it wasn't me being thick.

Should have known the minute she said everybody says it's stupid on money advisor. That's what confused me.

She probably wants the bathroom doing or something

Thanks again

[bigandclever]

Pesty said:

it makes more sense than buying more watches

Pesty said:

it may be better in a Tudor pelagos or something

Pesty said:

I could always release some watches

Pesty said:

She probably wants the bathroom doing or something

Yep, she's the one with the problem

[Cemesis]

Pesty said:

I hate being thick at finance.

It doesn't sound like you are being thick at all. You recognise a sound move and want to take it.

[Pesty]

bigandclever said:

Yep, she's the one with the problem

lol

hey ive not gone out and blown it have I baby steps


Its a good job Sagaris prices shot up otherwise the car may have been up for sale

[Pesty]

Paddy_N_Murphy said:

If it is a regular lump arising, you could look to offsetting

unfortunately it isnt.

its a one off