2 kids in crèche (ages 1.5 and 3.5)/ we are 39 and 38/ both wife and I working with 40k salary each/funding DC pension AVCs in full to 20%/ total retirement savings about 480k/ no debt/ 23k cash savings/ interested in FIRE so still want a cash cushion built up for the next bear market
Currently 203k/26years left on a 350k house on UB fixed at 3.2% and struggling to make a decision on KBC 10 year or UB 4 year fixed...no cash back to sweeten either deal as already with UB and if I were to switch to KBC, drawdown will not be in time before the end of March when 3k deal ends. Have some cash now so we can afford to drop the mortgage amount a bit and shorten term so thinking either:
A) 200k(min loan to qualify for 2.6%) with UB fixed for 4 years out of a 20 year term but with rates most likely going up in the future, lowest rate now but afraid what kind of rates will be available in 4 years time.
B) smaller 195k loan with KBC fixed for 10 years of a 20 term at the slightly higher rate of 2.95% but at a minimum the payment won't be more than this for 10 years.
OR C) don't shorten term to keep flexibility of a smaller payment in case of trouble?
Hope to keep overpaying a bit each year, but just can't decide. Thanks for any help/opinions!
Currently 203k/26years left on a 350k house on UB fixed at 3.2% and struggling to make a decision on KBC 10 year or UB 4 year fixed...no cash back to sweeten either deal as already with UB and if I were to switch to KBC, drawdown will not be in time before the end of March when 3k deal ends. Have some cash now so we can afford to drop the mortgage amount a bit and shorten term so thinking either:
A) 200k(min loan to qualify for 2.6%) with UB fixed for 4 years out of a 20 year term but with rates most likely going up in the future, lowest rate now but afraid what kind of rates will be available in 4 years time.
B) smaller 195k loan with KBC fixed for 10 years of a 20 term at the slightly higher rate of 2.95% but at a minimum the payment won't be more than this for 10 years.
OR C) don't shorten term to keep flexibility of a smaller payment in case of trouble?
Hope to keep overpaying a bit each year, but just can't decide. Thanks for any help/opinions!