Would this be a good idea or is it better to just pay a bigger lump sum off the balance and pay lower monthly payments?
I want to do something sooner rather than later with all the talk of increasing interest rates. Also, should I fix for 5, 7 or 10 years?
Thanks to everyone for the replies. I have fairly decent savings but they are just sitting in bank accounts not really earning anything at all. Should i increase the lump sum on the mortgage so?
I've heard from older relatives that they wouldn't pay too much off as over time the amount to repay seems less due to rising wages etc in the mean time. Is this still the case or is it still better to pay it off as fast as possible? Maybe we have different circumstances now?
I agree with this. Your priorities should usually be:If not, and assuming you have no other debt, a sufficient emergency fund, and are maxing pension contributions, you'll get a better return than leaving the funds in your bank account, with zero risk.
I'd agree with that order, in fact I'm following it myself.I agree with this. Your priorities should usually be:
in that order.
- Paying off expensive debt
- Building up an emergency fund in a savings/current account (3 to 6 months' living expenses)
- Saving money for any expenses you will have over the next few years (kids; adult children going to college, etc.)
- Maxing out your pension contributions (very large tax relief is given)
- Overpaying your mortgage
As for which mortgage to switch to, you can get more info in this thread. If your BER is good, you could do a simple switch to EBS's new green rate.
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