| Comment | 1. might cause problems because it's a threat to future affordability, but as it's pretty long term it should be ok - again they're likely to look at your broader history (i.e. have you been unemployed for any stretches between contracts), and which sector you're working in. If you think it's going to be permanent soon might be better to hold off until then as more lenders will take you on and will have better repayment terms
2. Well mortgage rates are about 4-5% and savings accounts only 1-2% so yes overall better to put money into the mortgage than savings, but allowing for keeping a decent buffer of savings. Many mortgages have overpayment options which might be a good way to deal with this - you can overpay the monthly amount from your savings, and this comes off the capital amount you owe, but you can still access that money (e.g. to cover future payments if you're unemployed, or to draw it back out if you need the money - effectively treating your mortgage as a high-interest savings account)
Again, you lose nothing by talking to an advisor, it's free, so might as well find out from them? |
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