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Invest in current property or overpay mortgage?

4 replies

Used3covid · 02/02/2021 14:11

We’re not sure which is most sensible, maybe we need our heads bashing together. We don’t have any significant CC debt and I’m almost done with my car payment so we’ll be ‘small debt’ free by the summer.

128k mortgage house valued at 155k at last valuation but they didn’t actually enter and we’ve made quite a few improvements since purchasing like installing a bath/redoing garden/sorting out damp issue so I think based on other sales it’s worth a little more (last house to sell on street got full asking price 164k offer with 1 less bedroom 1 less bathroom and no side/rear access).

Now we’ve got 4.5 years left on the fix and that ties in nicely for when DC will be starting school and we want to move areas BUT we’re in a position to either overpay the mortgage by 200-300 per month from April or to use that money to carry on doing improvement works to the house. It still needs windows/doors/first floor layout rejig/loft conversion.

We know this isn’t going to be our forever home so are loathed to do too much, unless it will drastically change the outcome in the future. The overpayment calculator on MSE puts 250 overpayment as around 13k better off in equity than if we didn’t do that. If we Chuck that money into the house surely there is a ceiling to the house value. Do people even care about windows and doors?

After all the housing market could just crash and we lose out either way.

OP posts:
windmill26 · 02/02/2021 14:40

I would overpay the mortgage.

Used3covid · 02/02/2021 16:23

Thanks @windmill26

OP posts:
MagicMatilda · 02/02/2021 20:27

Definitely overpay mortgage if you are planning on moving will set you up very nicely. And also having the potential for a loft conversion etc might end up making the property more desirable to buyers thinking they can add value themselves.

kittycorner · 03/02/2021 04:25

Overpay the mortgage, gives you so many more moving options and protects you if there's a dip in property values.

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