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[_] Advisor for home budgeting?

Tim Wintle timwintle at gmail.com
Sat Feb 2 12:50:33 GMT 2013

On Sat, 2013-02-02 at 10:36 +0000, Damian Webber wrote:
> Our mortgage will be paid off in less than seven years - then I will have £500k of assets! Probably to give up in inheritance tax one day.....

Remember that to "break even" your bank balance each month just has to
go down by less than the outgoing capital repayments on your morgage
then..


i.e. if you're paying £1.5K capital repayments (and £500 interest
repayments) on the mortgage, then if your bank balance is remaining
constant at the end of the month you're actually making a profit of
£1.5K per month..


I don't have a clue about your long term financial plans, but if you're
under 7 years from paying the mortgage off then it's it sounds like
you're in a very stable position and making fairly good annual profits
from your investments (i.e. your mortgage).

If things get _really_ bad you could always take out a long-term, fixed
rate loan to cover cashflow, as once the mortgage is paid off you're
going to have £2K extra a month to use to pay it back... It would only
be the same as renegotiating the remaining balance on your mortgage to a
higher rate - but save money where you can before considering that :-)

Tim