Increase mortgage payment amount vs Selling in 10 years

[NaDagda]

Hello all,

Wondering if someone can point me in the right direction.
Purchased our first home last year but would like to potentially sell in 10 years to move down the country, will see how it goes.

Mortgage: €270k
Rate: Fixed @ 2.65%
Term: 30years
Repayment: €1,088 per month
Current Payment: €1,388 per month

Both of us are maxing our Pension AVCs.
I am considering increasing the mortgage payment to €1,688 per month and want to know your thoughts if we were 100% going to sell in 10 years.

Thanks!

 

[Brendan Burgess]

I deal with the issue systematically in this thread:

Key Post - Overpay mortgage or contribute to pension or do something else?

This comes up in a lot of different threads, so I will set out some principles here to kick off the discussion. I will edit it in the light of feedback. There are many options with your savings in excess of your emergency cash fund Pay down your mortgage Build up a fund to enable you to trade...

www.askaboutmoney.com

In summary
If you need to sell your own home to trade up, then you should pay down your mortgage as you will get the full benefit from it.

If you can buy your new home without selling your own home, then it might be worth building up the deposit for the new home.

However, as your horizon is 10 years, it's absolutely clear that you should pay down your mortgage now with any and all savings.

You should review the situation about 5 years before you are ready to trade up. It might be right then to build up a deposit.

Brendan

 

[NaDagda]

That's great, thank you for the response and that key post Brendan! Appreciate the site.