Hi,
Looking for advice please.
Age 42, my wife is 41.
Current mortgag: Tracker ECB +0.75% - been overpaying by 200 euro per month since 2020. Also in the last year have made a couple more lump some overpayments totalling about 15k.
Outstanding balance: 90k
Remaining term: 14 yrs
House value: 220k
Incomings
My salary is 170k
Wife’s salary is 60k
Have shares valued at 80k
No real savings other than about 15k in a current account as I have spent the last 18 months clearing loans, buying land adjacent to the house and reducing the mortgage.
Now this is we’re I’m not sure, we are planning to renovate and extend our house (additional land purchase was to give us space for this). Planning obtained and tender drawings almost ready, no actual costs but I estimate it will cost about 450k. Had intentions of staring the work April/May time next year but can always put that back till the beginning of 2025.
What would be the best thing to do, keep paying of the existing tracker mortgage or start to gather real savings as a deposit for a second mortgatge (In this case, I am assuming the equity I have built will work instead of a cash deposit.)?
With a year of saving I could have 40 - 50k (including the 15k I already have), also due some
bonus at end of the year to help with that.
Mortgage rates and pricing might be lower next year but if possible I’d rather just go ahead this year.
Thanks
Looking for advice please.
Age 42, my wife is 41.
Current mortgag: Tracker ECB +0.75% - been overpaying by 200 euro per month since 2020. Also in the last year have made a couple more lump some overpayments totalling about 15k.
Outstanding balance: 90k
Remaining term: 14 yrs
House value: 220k
Incomings
My salary is 170k
Wife’s salary is 60k
Have shares valued at 80k
No real savings other than about 15k in a current account as I have spent the last 18 months clearing loans, buying land adjacent to the house and reducing the mortgage.
Now this is we’re I’m not sure, we are planning to renovate and extend our house (additional land purchase was to give us space for this). Planning obtained and tender drawings almost ready, no actual costs but I estimate it will cost about 450k. Had intentions of staring the work April/May time next year but can always put that back till the beginning of 2025.
What would be the best thing to do, keep paying of the existing tracker mortgage or start to gather real savings as a deposit for a second mortgatge (In this case, I am assuming the equity I have built will work instead of a cash deposit.)?
With a year of saving I could have 40 - 50k (including the 15k I already have), also due some
bonus at end of the year to help with that.
Mortgage rates and pricing might be lower next year but if possible I’d rather just go ahead this year.
Thanks