Hi,
I usually post on the debt free wannabee boards (signature will explain why!) but would really appreciate some advice regarding my mortgage.
I have a mortgage for 50% of my home currently on a tracker 1% above the base rate. I am 7 years into the mortgage and this has reduced from 82000 to around 63000. I mortgaged 100% of my share with no deposit. Flats are currently selling for £189,000 - so I would currently have equity in my half. I would love to buy my home when my debts are repaid but am aware any new mortgage would not be on such favourable terms.
I have been overpaying by £100 per month but have just stopped this to clear my debts. Currently I plan to throw £1000 per month at my credit cards. Overpayments of £500 per month are allowed on my mortgage without penalty.
So I am looking to the future but wonder is it wise to stop these overpayments as really Im trying to build up more equity in the property I own to get a better deal when I sell or buy the remainder once my debts are clear in 2 years.
Advice would be most welcome!
I usually post on the debt free wannabee boards (signature will explain why!) but would really appreciate some advice regarding my mortgage.
I have a mortgage for 50% of my home currently on a tracker 1% above the base rate. I am 7 years into the mortgage and this has reduced from 82000 to around 63000. I mortgaged 100% of my share with no deposit. Flats are currently selling for £189,000 - so I would currently have equity in my half. I would love to buy my home when my debts are repaid but am aware any new mortgage would not be on such favourable terms.
I have been overpaying by £100 per month but have just stopped this to clear my debts. Currently I plan to throw £1000 per month at my credit cards. Overpayments of £500 per month are allowed on my mortgage without penalty.
So I am looking to the future but wonder is it wise to stop these overpayments as really Im trying to build up more equity in the property I own to get a better deal when I sell or buy the remainder once my debts are clear in 2 years.
Advice would be most welcome!