Hi folks,
I'm in a bit of a quandry and would appreciate some advice on what to do with my mortgage.
Current Mortgage:
HSBC Lifetime Tracker = 2.69% - £72,000 outstanding
House is valued at approx £130,000.
Have overpaid since day one, normal monthly payment about £450 ish but I pay £1000.
Thinking of switching to Britannia 5-year fix @ 2.79% so 0.1% higher rate but I think it might be worth it for 5 years security.
However - subject to finding jobs my wife and I would like to move nearer to her parents as soon as possible. Realistically with the job market how it is, that could be years rather than months but who knows....
If / when we do move then we would look for houses at about £250,000. Assuming ours sold for £130,000 with £70k outstanding in the mortgage, would leave us with needing a further £120k on mortgage.
If we are fixed with Co-Op, I believe the following would apply = we could port the £70k @ 2.79% to the new house and would then need to apply for a second mortgage which would have LTV calculated as the full mortaged amount on the house (i.e. (£70k + £120k) / £250k x 100 = 76% LTV. (Will say 75% for cimplicity).
If I am right so far, that would leave us with:
£70k @ 2.79 and then
£120k @ 3.39 (best 5 year fix I can currently find on Britannia site - obviously could change by the time we move).
Is that right so far?
Part two:
If I do move to the 2.79% fix, am I better to continue the overpayments as present, or put it into savings with a view to reducing the £120k portion later which would be at a higher rate, even though it would probably achieve less than 2.79% in a savings account now?
Apologies for long post, look forward to your thoughts.
I'm in a bit of a quandry and would appreciate some advice on what to do with my mortgage.
Current Mortgage:
HSBC Lifetime Tracker = 2.69% - £72,000 outstanding
House is valued at approx £130,000.
Have overpaid since day one, normal monthly payment about £450 ish but I pay £1000.
Thinking of switching to Britannia 5-year fix @ 2.79% so 0.1% higher rate but I think it might be worth it for 5 years security.
However - subject to finding jobs my wife and I would like to move nearer to her parents as soon as possible. Realistically with the job market how it is, that could be years rather than months but who knows....
If / when we do move then we would look for houses at about £250,000. Assuming ours sold for £130,000 with £70k outstanding in the mortgage, would leave us with needing a further £120k on mortgage.
If we are fixed with Co-Op, I believe the following would apply = we could port the £70k @ 2.79% to the new house and would then need to apply for a second mortgage which would have LTV calculated as the full mortaged amount on the house (i.e. (£70k + £120k) / £250k x 100 = 76% LTV. (Will say 75% for cimplicity).
If I am right so far, that would leave us with:
£70k @ 2.79 and then
£120k @ 3.39 (best 5 year fix I can currently find on Britannia site - obviously could change by the time we move).
Is that right so far?
Part two:
If I do move to the 2.79% fix, am I better to continue the overpayments as present, or put it into savings with a view to reducing the £120k portion later which would be at a higher rate, even though it would probably achieve less than 2.79% in a savings account now?
Apologies for long post, look forward to your thoughts.