Personally, I would leave the mortgage alone, but I can neither advise nor recommend. However, factually an early repayment of any sort will simply reduce compound debit interest at a very low rate of 1.99% whereas all your available extra funds could be compounding at a higher credit interest rate in a savings account. That way, rather than committing along the way to your mortgage reductions, you will have the option to choose from a lovely pot of savings in 3.5 years time, how much of a lump sum reduction you wish to make at the end of your current deal. There are normally no restrictions on the size of your lump sum reduction when your current deal expires although check first.
I used to be like that but the last 5 years personally I’ve preferred to lump into a private pension for the tax relief rather than overpaying the mortgage due for low rate I gave. But it expires in 2025 so that may change
After my own heart. I wanted rid of my mortgage at the earliest possible opportunity and paid off lumps whenever possible even when it wasn't the 'correct' thing financially, the relief of having no debt more than made up for it. And paying it off early gave me years of putting significant amounts into pensions/investments
The Telegraph had this graphic last week. We’re heading towards the mortgage repayments unaffordability of 1990 and 2007.Yeah and what did the property and monthly payments cost in comparison to today's prices - RELATIVE to salaries in 1979.
Nice one. It enabled me to make a career change with a less paid, less stressful but more enjoyable job.After my own heart. I wanted rid of my mortgage at the earliest possible opportunity and paid off lumps whenever possible even when it wasn't the 'correct' thing financially, the relief of having no debt more than made up for it. And paying it off early gave me years of putting significant amounts into pensions/investments
Pensioners with (non-pension) savings not greater than £16k receive housing benefit if renting, on top of the state pension.
I’m not a mortgage expert.
@StonehamPark should consider putting his spare money is a cash ISA, Virgin are doing about 5% for 2 years. Make little sense paying off when rates are 1.9%, the cash is locked up and you can get a better return elsewhere.
Likewise. Overpaid monthly for several years - the impact on the overall term of the loan of overpayments is surprisingly large. The psychological benefit of not having a mortgage was colossal when we finally paid it off (almost 10 years early).After my own heart. I wanted rid of my mortgage at the earliest possible opportunity and paid off lumps whenever possible even when it wasn't the 'correct' thing financially, the relief of having no debt more than made up for it. And paying it off early gave me years of putting significant amounts into pensions/investments
With respect to everyone who has offered their advice, they appear to have done so without a full understanding of your personal circumstances, your ambitions, your tolerance to risk etc etc - IMO the best advice would be to talk to an IFA.
If you ignore all the repossessions, bankruptcies and negative equity then yes, everyone survived.
If you have a property in a desirable area you can mitigate some of the increase by passing it onto the tenants. Those in less desirable areas will find it tough. And rents in Brighton and Hove seem to have already increased a lot during and post pandemic.
I would agree with this
I third this... As i mentioned when i responded to a couple of posters, it is all about personal preferences and this can only be understood by way of a meeting with an IFA who would ask questions to understand your goals, preferences and attitude to risk.