Hi
I would appreciate opinion on this. We're a bit confused.
We're currently have a tracker, ECB + 0.99%. About 92K left to pay. We've been overpaying by about E400 per month into it for the past year or so with the intention of clearing the debt asap. We also put in a lump sum in the past month. House is currently worth about 275K.
We now plan to build a new house for which we will need a mortgage of about 300K. We will then obviously be in variable or fixed rate land.
Someone has told us that we should minimise payments into the tracker, hold onto it for as long as possible and divert any additional funds we have into a savings account to reduce the amount required for the new mortgage.
Is this correct in all cases? Or does it come down to the specific amounts involved?
Thanks in advance.
I would appreciate opinion on this. We're a bit confused.
We're currently have a tracker, ECB + 0.99%. About 92K left to pay. We've been overpaying by about E400 per month into it for the past year or so with the intention of clearing the debt asap. We also put in a lump sum in the past month. House is currently worth about 275K.
We now plan to build a new house for which we will need a mortgage of about 300K. We will then obviously be in variable or fixed rate land.
Someone has told us that we should minimise payments into the tracker, hold onto it for as long as possible and divert any additional funds we have into a savings account to reduce the amount required for the new mortgage.
Is this correct in all cases? Or does it come down to the specific amounts involved?
Thanks in advance.