My current plans are to rebuild my savings and look into energy home upgrades to future-proof the house and reduce my monthly expenses further, ideally paid for without financing. (Looking at insulation and solar PV at the moment.)
I doubt I'll want to move any time soon. The house is small with no room for extensions, but I'm happy where I am and it seems reasonably possible to adapt it if my health issues get worse.
I agree with this. There is no harm in having debt for capital projects, it is how the world works. Having too much debt is the issue. If you can get the work done now with a loan, get it done. Prices are expensive for building work now but don't expect them to fall back to pre 2020 levels, inflation doesn't work that way.I don't think you need to wait until you do it without financing. There really is no harm in borrowing for cost-saving work like this. I imagine that the energy bills saved would well exceed the interest on the loan.
Thank you. I just sent the extra money the same way as any other overpayment, and occasionally got a letter back from the bank talking about a small penalty, if I understand your question correctly.Congratulations Robin, can I ask how can you overpay your mortgage over the 10%? Thanks
Thank you for confirming. I'm hoping it doesn't go that way but this is a big reason why I'm looking into ways to reduce monthly expenses while I can afford it. I take both you and Brendan's point on loans making sense in some cases! I called a few companies to get quotes and their current lead times, and I'll get on with loan applications once I understand the costs. Appreciate the advice and thoughts.Your biggest risk is your health issue and being unable to work due to it. As you said, you won't get income protection for it so you will have to self insure. You should look at building your emergency/ cashflow fund. If you are unable to work, you will have state disability and that is it.
Thank you, yes. I know you can overpay by 10% but didn't realise you can just send additional funds on an ad hoc basis. Might try that...Thank you. I just sent the extra money the same way as any other overpayment, and occasionally got a letter back from the bank talking about a small penalty, if I understand your question correctly.
Thank you for confirming. I'm hoping it doesn't go that way but this is a big reason why I'm looking into ways to reduce monthly expenses while I can afford it. I take both you and Brendan's point on loans making sense in some cases! I called a few companies to get quotes and their current lead times, and I'll get on with loan applications once I understand the costs. Appreciate the advice and thoughts.
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