payoff some of my mortage or upgrade my car???

wijcc

wijcc

wijcc

Soldato
Joined
10 Aug 2003
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London
I have about £5000 in savings, I can't decide between whether I should payoff £5000 off my mortage or upgrade my car. My car is working fine but its a little dated and scratched up, it is a 98 mits. carisma. If i payoff £5000 off my mortage in the long run it will save me over £10000 in mortage repayments by the end of the mortage term.
What would you guys do?
 
gumbald said:
Mortgage.

Cars depreciate.
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quoted for truth, i'm sure you've worked hard to save this money so put it on the mortgage that way in ten years time it will still have a tangible value where as the 5k car will be long gone and you'll be anoth 5k down.
 
High interest savings.
Then you have it if you need it. If you don't need it you will still have a big chunk to pay of your mortgage with.

It depends what rate you have on your mortgage and what interest you can get on saving.
 
If by putting £5k in to your mortgage you're saving £10k in the long run, you could use that £5k to get a new car anyway... So putting it into the mortgage means you can potentially have both!
 
i'm only 1.5 years into my mortage still got another 23.5 years to go. Getting very envyious of other people getting nicer cars etc.
But I will wait till after the new year when my cars MOT comes up on the 7th. I'm 95% leaning towards paying off the mortage hence why i have been saving that money. But as they say you only live once???
 
wijcc said:
i'm only 1.5 years into my mortage still got another 23.5 years to go. Getting very envyious of other people getting nicer cars etc.
But I will wait till after the new year when my cars MOT comes up on the 7th. I'm 95% leaning towards paying off the mortage hence why i have been saving that money. But as they say you only live once???
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Still pay it off the mortgage. Speak to your bank as you could use it to reduce the term of your mortgage instead of just reducing the amount owed.
 
isn't there a penalty for over payment? I'm sure you can't just walk into the building society and slap down a cheque for £5000. I think on my mortgage you can only overpay by £500 per month. I think the best time is when your mortgage is up for renewal...ie after 2/3 years
 
VonClinkerhofen said:
isn't there a penalty for over payment? I'm sure you can't just walk into the building society and slap down a cheque for £5000. I think on my mortgage you can only overpay by £500 per month. I think the best time is when your mortgage is up for renewal...ie after 2/3 years
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Completely depends on your mortgage.
 
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