Hi!
I have been planning to build on my mortgage plans. I need to find out which of the following ways would be better for me and my family.
My current mortgage was one of the last 100% borrow deals before the crash. I borrowed 100k and have been repaying my deal at 6.09%, I am now fixed for 3 1/2 years before I can plan to remortgage.
I can now afford to spare £150 - £200 a month.
My issue lies with now wondering which of the following options would be benefit me.
1, I make a monthly overpayment and reduce my mortgage quicker with less interest (seems my % is high)
2, save my money in a ISA each month to get a bigger deposit and continue to pay my standard mortgage fee.
To me my head is saying save it because i want to buy a bigger house and I will need 10% at least...but then i'm paused by the fact that I am repaying £3 for ever £1 i borrow or worse and if i reduce my mortgage and sell it on, the deposit will be more margin and i'd have paid less interest.
3, last of all - if i sell my house and make £10,000 - do i have to pay any tax etc on this or can this be my deposit for my next property.
as you can see, need some serious support on this one.
thank you!! :money:
I have been planning to build on my mortgage plans. I need to find out which of the following ways would be better for me and my family.
My current mortgage was one of the last 100% borrow deals before the crash. I borrowed 100k and have been repaying my deal at 6.09%, I am now fixed for 3 1/2 years before I can plan to remortgage.
I can now afford to spare £150 - £200 a month.
My issue lies with now wondering which of the following options would be benefit me.
1, I make a monthly overpayment and reduce my mortgage quicker with less interest (seems my % is high)
2, save my money in a ISA each month to get a bigger deposit and continue to pay my standard mortgage fee.
To me my head is saying save it because i want to buy a bigger house and I will need 10% at least...but then i'm paused by the fact that I am repaying £3 for ever £1 i borrow or worse and if i reduce my mortgage and sell it on, the deposit will be more margin and i'd have paid less interest.
3, last of all - if i sell my house and make £10,000 - do i have to pay any tax etc on this or can this be my deposit for my next property.
as you can see, need some serious support on this one.
thank you!! :money: