Hi
Newish mortgage, thirty years left to run. Only 10k equity due to historical reasons but house value moving in right direction. Would like to move to a bigger home in 5-10 years (assuming ours is currently worth 315k then target would be something currently worth 400k). Currently mortgage is top heavy with interest. Should we be overpaying capital on this variable rate mortgage by reducing savings? Or paying standard mortgage repayments and building up the savings to add to the equity if we're able to trade up in a few years?....Or does it matter?
Age: 35
Spouse’s age: 33
Annual gross income from employment or profession: 60k
Annual gross income of spouse: 50k
Monthly take-home pay : ~5800pm
Type of employment: Private Sector perm, Spouse Public Sector perm
In general are you:
(a) spending more than you earn, or
(b) saving? Saving
Rough estimate of value of home: 315,000
Amount outstanding on your mortgage: 305,000
What interest rate are you paying? 3.7% var
Other borrowings – car loans/personal loans etc: None
Do you pay off your full credit card balance each month? Yes
If not, what is the balance on your credit card? 0
Savings and investments: ~20k Monthly savings: ~1300 at standard deposit rate
Do you have a pension scheme?
1 x Private sector defined contribution scheme 15% total contribution monthly (7.5 + company match)
1 x Public sector pension
Do you own any investment or other property?
Holiday Home, no debt. May consider long term let of same in future
Ages of children: None but planning to have a family.
Life insurance: Mortgage cover & extra life cover
Other: Will need to change at least one of the cars in next 3 years
Newish mortgage, thirty years left to run. Only 10k equity due to historical reasons but house value moving in right direction. Would like to move to a bigger home in 5-10 years (assuming ours is currently worth 315k then target would be something currently worth 400k). Currently mortgage is top heavy with interest. Should we be overpaying capital on this variable rate mortgage by reducing savings? Or paying standard mortgage repayments and building up the savings to add to the equity if we're able to trade up in a few years?....Or does it matter?
Age: 35
Spouse’s age: 33
Annual gross income from employment or profession: 60k
Annual gross income of spouse: 50k
Monthly take-home pay : ~5800pm
Type of employment: Private Sector perm, Spouse Public Sector perm
In general are you:
(a) spending more than you earn, or
(b) saving? Saving
Rough estimate of value of home: 315,000
Amount outstanding on your mortgage: 305,000
What interest rate are you paying? 3.7% var
Other borrowings – car loans/personal loans etc: None
Do you pay off your full credit card balance each month? Yes
If not, what is the balance on your credit card? 0
Savings and investments: ~20k Monthly savings: ~1300 at standard deposit rate
Do you have a pension scheme?
1 x Private sector defined contribution scheme 15% total contribution monthly (7.5 + company match)
1 x Public sector pension
Do you own any investment or other property?
Holiday Home, no debt. May consider long term let of same in future
Ages of children: None but planning to have a family.
Life insurance: Mortgage cover & extra life cover
Other: Will need to change at least one of the cars in next 3 years