My offset mortgage allowed me to increase the mortgage due to the increase in equity as want to do an extension. I changed my mind and used the equity for deposit to buy another house ( a little cheeky). Changed to repayment when interest rates low. Going to look at BTL at renewal. Higher rate tax payers would benefit more.
I do three ways. Overpay mortgage, save into S&S isa and pay into NHS pension. Regardless of mortgage rate, paying it off early thus reducing interest paid is guaranteed. Plus you have the peace of mind of having a secured abode.
Your videos are always so helpful - thank you! I appreciate what you said about the rate of house price increase not actually being that significant anymore and you might actually gain more investing. I'm debating whether I should hold out buying my first home for a few more years (where I could hopefully afford something a bit nicer) and invest some of the deposit money I had saved up instead. A lot to ponder
A really usual episode! I think it just highlights how personal all the decisions can be. I think it could have been useful to delve deeper into the tax implications! I wonder if anyone on the panel invests beyond ISA allowances for example. The position I've landed on is to invest the full lifetime ISA allowance in order to get the 25% government bonus, and then overpay the mortgage with any remaining income, as the flexibility of having lower outgoings is very powerful for me!
Thanks for this. I really enjoyed this. I'm in favor of overpaying but that's because I'm on a 5year fixed rate with a low interest - 1.64, from covid times. I'm hoping to pay as much off before the fixed rate ends.
Stumbled across your video. I currently do both, pay into an ISA (sorry typo then) and a Sipp, but also overpay monthly to get to a point where I am able to pay off the mortgage earlier.
So confused at the comments about minute 7/8. "the mortgage is mo lowest debt at 4-6%" , implying she has debts that have interest rates beyond 6% and yet she is investing that money expecting tax free/charge free returns of greater than 6%? And why no discussion about charges and tax. You can only put 20k per year in a tax free ISA wrapper.
I think Cyra was referring to her student loan? Which currently has an interest rate of 7.8% but because of the way the student loan works making overpayments on the student loan might mean you end up worse off.
First time i hear about Offset Mortgages. Please do a video of that.
My offset mortgage allowed me to increase the mortgage due to the increase in equity as want to do an extension. I changed my mind and used the equity for deposit to buy another house ( a little cheeky). Changed to repayment when interest rates low. Going to look at BTL at renewal. Higher rate tax payers would benefit more.
Nice!
I do three ways. Overpay mortgage, save into S&S isa and pay into NHS pension. Regardless of mortgage rate, paying it off early thus reducing interest paid is guaranteed. Plus you have the peace of mind of having a secured abode.
Your videos are always so helpful - thank you! I appreciate what you said about the rate of house price increase not actually being that significant anymore and you might actually gain more investing. I'm debating whether I should hold out buying my first home for a few more years (where I could hopefully afford something a bit nicer) and invest some of the deposit money I had saved up instead. A lot to ponder
😍
A really usual episode! I think it just highlights how personal all the decisions can be. I think it could have been useful to delve deeper into the tax implications! I wonder if anyone on the panel invests beyond ISA allowances for example. The position I've landed on is to invest the full lifetime ISA allowance in order to get the 25% government bonus, and then overpay the mortgage with any remaining income, as the flexibility of having lower outgoings is very powerful for me!
Beyond ISA, VCT and EIS are tax reducers and can be useful.
Thanks for this. I really enjoyed this. I'm in favor of overpaying but that's because I'm on a 5year fixed rate with a low interest - 1.64, from covid times. I'm hoping to pay as much off before the fixed rate ends.
Glad it was helpful!
Stumbled across your video. I currently do both, pay into an ISA (sorry typo then) and a Sipp, but also overpay monthly to get to a point where I am able to pay off the mortgage earlier.
Stumble no more - hit the subscribe button for a new video each week - unless we’re on call then it’s work/sleep/work repeat.
So confused at the comments about minute 7/8. "the mortgage is mo lowest debt at 4-6%" , implying she has debts that have interest rates beyond 6% and yet she is investing that money expecting tax free/charge free returns of greater than 6%?
And why no discussion about charges and tax. You can only put 20k per year in a tax free ISA wrapper.
I think Cyra was referring to her student loan?
Which currently has an interest rate of 7.8% but because of the way the student loan works making overpayments on the student loan might mean you end up worse off.