Property News · September 12, 2022

Should I pay off my mortgage or use the money for a deposit on a second property?


If I paid the remaining balance I could rent out my home and save for a deposit on another placeQ I’m a 42-year-old full-time professional and in a rather fortunate but tricky situation, which I would like your help with. My seven-year fixed-rate mortgage is coming to an end on 2 May 2023, after which I am not sure whether I should remortgage or pay off the balance.I have about 20% of the mortgage left, which I could pay off as of today. However, I would incur an early repayment charge of just over £3,000, so I think I’d better wait until the fixed deal expires as the charge no longer applies once the mortgage is on a variable rate. If it’s paid off, I’d still have a bit of a safety net of about £10,000 left for any emergency expenses. Continue reading…

Source : theguardian.com
Read more…Should I pay off my mortgage or use the money for a deposit on a second property?

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