Overpay the mortgage VS saving Overpay the mortgage VS saving
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    Default Overpay the mortgage VS saving

    Hi all

    I only recently bought my first property. My mortgage monthly repayment is fairly manageable and I am in a position where I can set aside a reasonable amount.

    I could overpay my mortgage and pay off my mortgage early or I could save for a deposit on a second house, which I would buy to let.

    Based on your experiences, what would be the wiser choice? Have you done anything similar in the past? Is it wise to have not 1 but 2 mortgages? I'm pretty young and newbie in these sort of things so every suggestion is very much appreciated.

    Thanks

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    You are asking a question that is highly dependant on the person, lifestyle, current situation, vision for the future. We simply cannot begin to give you any suitable advice based on all that stuff only YOU know.

    Have you researched the buy to let option with the rules around loan interest not an expense, new stamp duty on BTL's, interest rate ROI's? Surely you have to have all that nailed before you can start making financial decisions.

    Are you in a relationship, expect to be so soon so the mortgage situation may change?

    What do you do? If you are a generic contractor in PS you are in the tulip, if you are a high end specialist in niche area you can afford to splash the cash.

    If you do get a BTL and you have a period of a couple of months with no tenant, two mortgages and end up on the bench what will be your financial situation then?

    What is your warchest like?

    Have you do any research in to other saving/investment opportunities beyond BTL's and have you factored in a pension yet?

    Far too much for us to answer a question as simplistic as that.
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    If you have a wife and kids the biggest problem with over paying is that if you end up getting divorced you will never see the money again. At least if you save it, or invest it, on divorce there is a chance you may get to keep some of it.

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    Quote Originally Posted by CoolCat View Post
    If you have a wife and kids the biggest problem with over paying is that if you end up getting divorced you will never see the money again. At least if you save it, or invest it, on divorce there is a chance you may get to keep some of it.
    What a lovely, positive view of the future. Kill me now.
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    Quote Originally Posted by LondonManc View Post
    What a lovely, positive view of the future. Kill me now.
    You mean the bit where he thinks he might actually keep some of it? I'd say that's pretty deluded not positive.
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    Quote Originally Posted by LondonManc View Post
    What a lovely, positive view of the future. Kill me now.
    Just pretend you are russian I can see Brillo learning Russkie!

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    Quote Originally Posted by northernladuk View Post
    You are asking a question that is highly dependant on the person, lifestyle, current situation, vision for the future. We simply cannot begin to give you any suitable advice based on all that stuff only YOU know.

    Have you researched the buy to let option with the rules around loan interest not an expense, new stamp duty on BTL's, interest rate ROI's? Surely you have to have all that nailed before you can start making financial decisions.

    Are you in a relationship, expect to be so soon so the mortgage situation may change?

    What do you do? If you are a generic contractor in PS you are in the tulip, if you are a high end specialist in niche area you can afford to splash the cash.

    If you do get a BTL and you have a period of a couple of months with no tenant, two mortgages and end up on the bench what will be your financial situation then?

    What is your warchest like?

    Have you do any research in to other saving/investment opportunities beyond BTL's and have you factored in a pension yet?

    Far too much for us to answer a question as simplistic as that.



    Or one question to ask, if I were to die next year, which choice would I feel best about?

    People plan for futures they don't know they'll have. Personally if I had excess cash I'd just buy safe shares rather than waste my energy on letting property.
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    Quote Originally Posted by scooterscot View Post
    Or one question to ask, if I were to die next year, which choice would I feel best about?
    Hmm I'm not sure I'd agree with that at all. Based on the figures if that actually happening I'd have said that's a pretty poor option to consider when investing.
    People plan for futures they don't know they'll have. Personally if I had excess cash I'd just buy safe shares rather than waste my energy on letting property.
    Again. Simply don't agree with that. If you do have that future you, your family and future generations will be comfortable. If you are dead you won't care anyway.

    With that thinking then surely hookers and plenty of coke is the thing to do.

    You'd make as good a Financial Advisor as I would a Samaritan.
    Last edited by northernladuk; 21st October 2016 at 11:33.
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    If I'm married with kids and were to die in two years, I'd want to make sure that those left behind are best looked after, whether that be in a house that they don't need a mortgage on or whatever. If you dying invokes life insurance that pays the mortgage off, then why bother overpaying?
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    Quote Originally Posted by northernladuk View Post
    You'd make as good a Financial Advisor as I would a Samaritan.
    Quote Originally Posted by northernladuk View Post
    surely hookers and plenty of coke is the thing to do.
    Agreed, your advice hasn't been helping and that premium number is costing me a fortune

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