Hi there,
I am not sure what to do and was wondering if someone could advise me.
My current mortgage is a tracker and the rate at the moment stands at 2.8%. This was over 5% in September last year so our repayments have dropped considerably. We are currently saving for a wedding so when that is over I want to continue the savings but am not sure what to do. I have contacted the bank and got details of what are repayments would be were we to reduce our current mortgage term by 7 years (we are currently 2.5 years into a 35 year mortgage) - all these figures relate to the 2.8% so that could obviously go down or up in the future. I am hoping by reducing the term we will be paying more off the principal and hopefully won't face negative equity when we decide to move in the future.
So my thoughts at the moment are that we could either:
a. reduce the term by 7 years and also save 600/700 per month into a savings account
b. leave the term as it is and save 1000 into a savings account per month.
Given the current climate what would people advise me to do. We both feel quite secure in our jobs at the moment but from watching the news every day you really don't know whats around the corner. I am really not sure whether we should air on the side of caution and leave the term the way it is, or if our jobs are not affected I don't want to be in a position in 5 years where I want to move house and am thinking I wish I had done something about reducing the mortgage term.
Any advice as always is greatly appreciated!
I am not sure what to do and was wondering if someone could advise me.
My current mortgage is a tracker and the rate at the moment stands at 2.8%. This was over 5% in September last year so our repayments have dropped considerably. We are currently saving for a wedding so when that is over I want to continue the savings but am not sure what to do. I have contacted the bank and got details of what are repayments would be were we to reduce our current mortgage term by 7 years (we are currently 2.5 years into a 35 year mortgage) - all these figures relate to the 2.8% so that could obviously go down or up in the future. I am hoping by reducing the term we will be paying more off the principal and hopefully won't face negative equity when we decide to move in the future.
So my thoughts at the moment are that we could either:
a. reduce the term by 7 years and also save 600/700 per month into a savings account
b. leave the term as it is and save 1000 into a savings account per month.
Given the current climate what would people advise me to do. We both feel quite secure in our jobs at the moment but from watching the news every day you really don't know whats around the corner. I am really not sure whether we should air on the side of caution and leave the term the way it is, or if our jobs are not affected I don't want to be in a position in 5 years where I want to move house and am thinking I wish I had done something about reducing the mortgage term.
Any advice as always is greatly appreciated!