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If you have spare cash move to a nicer place
Or buy a fixer, renovate and extend it then sell.
Overpaying mortgage is dead money atm especially if your overall prospects are good.
Cash for the next move does not have to be equity in the home, that’s only useful for remortgaging. It can come from any source.
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I'd tend to prioritise keeping your options open.
If there's a particular LTV that gets you a better % then could be worth going for that figure.
If you have a mortgage that allows overpayments then there's always the option of keeping a long term but knowing you can reduce it if you choose.
You'll probably earn more putting the overpayments into a S&S ISA... probably.I'm expecting to be moving in the next few weeks and decided to put a smaller deposit and to keep the rest for either improvements or investing elsewhere. Personally the flexibility is preferable over having a smaller outstanding mortgage, though I know plenty of others who prefer a smaller mortgage and smaller savings. I don't think one is necessarily better than the other.
Edit: What Howard said basically.
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I'm only 28
well fuck you then
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it would be great to build even greater equity in our place, in time for our next move
It doesn't really matter whether you build greater equity in your place, money in the bank, ISA, etc so long as you can access it when you buy the next place. It doesn't matter where the money comes from
If you're disciplined enough to save or overpay then the term doesn't mean that much.
If, on the other hand, if you have money you spend money then it may be best forcing yourself to put it into your mortgage by reducing the term and increasing repayments.
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On the other hand - we will probably move again in 3-4 years
Lots of strong arguments against buying and selling in such a short timeframe, particularly stamp duty. Probably cheaper to sell your existing place, sit in cash and rent somewhere than to pay stamp duty twice in that period.
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Howard
duncs
amey
aggi
NickCJ
@swedeee
going to be remortgaging in the next few months. what factors do people take into account when deciding on how to much to overpay/up their monthly payments by? I am in a much stronger financial position than I was when I took out the mortgage 2 years ago so could comfortably double the payments and cut down the loan period quite significantly (its currently 33 years - I'm only 28)....
at the same time, interest rates are so low that I am not really in a huge rush to get it paid off - with savings from salary going into my S&S ISA etc. On the other hand - we will probably move again in 3-4 years and as my partner doesn't earn a huge amount it would be great to build even greater equity in our place, in time for our next move