Fixed Mortgage - Can I increase payments??

Irishchappie

Registered User
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113
Overview of the situation is this:

Since I purchased my house my income has increased a fair bit due to job change, promotions in work, new qualifications and skillsets gained etc, basically, my skillset is worth more so my employer is willing to pay me more to stay and I have a small business venture on the side thats going well and adding a nice additonal monthly income to the equation.

However, I'm currently 2 years into a 5 year fixed mortgage. From what I've been told I cant increase my mortgage payments until the 5 year period of the fixed mortgage is up.

This is a bit annoying seeing as I have additonal cash and could put a serious dent in my mortgage if I could use this all, however after reading this thread

http://www.askaboutmoney.com/showthread.php?p=604266#post604266

it doesnt seem worth my while putting the money into a high interest savings account as in the end it could cost me money.

I dont want to renegotiate my current mortgage as its at a substantially lower rate, over 1% than current lending rates and I couldnt better it.

I already have a decent amount of savings, but this isnt really making a lot of money but is purely a rainy day fund and available on short notice if required and I've no other debts.

I was in a relationship that was looking as if we were going to move in together and then I could have used this additonal money to buy into my then partners place, however this has since ended.

Purchasing another property was an option, then renting it out while paying additional sums towards the mortgage over the few year I keep it, so when the time comes to sell, I'll have considerably reduced the mortgage and then then money I get off that I'll put towards my current mortgage on my home. However could I be hit wth capital gains and with the current property market situation, I'm not sure if thats a good idea?

So the next question is what to do?? Has anyone every had this problem before?

My main aim is to reduce the mortgage on my home.

Any suggestions?

I.C
 
why don't you lodge it as a credit to your mortgage account? That way the interest you pay on your mortgage will be less, so you save interest and at the end of the 5 years just part redeem it off your mortgage then. At least you will be saving on interest due.
 
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