Good afternoon everyone, I was wondering if someone out there could help.
We’ve had our mortgage with HSBC since October 2012. We borrowed £297.000, at 4.99 fixed for 2 years. Our payments have been £ 1735 per month but as we took advantage of the fact we could pay an extra 20% every month, we have increased our payments to £2081 since September 2013.
In October this year, we will go back to variable rate of 3.94% reducing the payments to £1558.
We will have £279.000 left to pay in October.
Now, we are also in the process of selling our BTL flat, expecting to make a profit £80.000.
My questions are:
- Are we better off paying a £80.000 lump sum from our mortgage?
- Is it more financially sound to increase the monthly payments instead. And how much by?
- Should we remortgage with a better interest rate?
- Should we reduce the term?
-
I am not mortgage savvy and don’t know where to start, there is so much information but unless I use my example, I can’t make up my mind…
Our plan is to pay off our mortgage as quickly as possible but also try to keep our monthly payment around the £1500 mark, if possible as we have now got a son!
We do have money on the side in case of a “crisis”, so this question is only about the mortgage. I hope I have given you enough details.
Thanks very much for your help!
We’ve had our mortgage with HSBC since October 2012. We borrowed £297.000, at 4.99 fixed for 2 years. Our payments have been £ 1735 per month but as we took advantage of the fact we could pay an extra 20% every month, we have increased our payments to £2081 since September 2013.
In October this year, we will go back to variable rate of 3.94% reducing the payments to £1558.
We will have £279.000 left to pay in October.
Now, we are also in the process of selling our BTL flat, expecting to make a profit £80.000.
My questions are:
- Are we better off paying a £80.000 lump sum from our mortgage?
- Is it more financially sound to increase the monthly payments instead. And how much by?
- Should we remortgage with a better interest rate?
- Should we reduce the term?
-
I am not mortgage savvy and don’t know where to start, there is so much information but unless I use my example, I can’t make up my mind…
Our plan is to pay off our mortgage as quickly as possible but also try to keep our monthly payment around the £1500 mark, if possible as we have now got a son!
We do have money on the side in case of a “crisis”, so this question is only about the mortgage. I hope I have given you enough details.
Thanks very much for your help!