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    • Cat7476
    • By Cat7476 18th Mar 17, 2:25 PM
    • 2Posts
    • 0Thanks
    Cat7476
    Mortgage Free - What Next?
    • #1
    • 18th Mar 17, 2:25 PM
    Mortgage Free - What Next? 18th Mar 17 at 2:25 PM
    I'm new to this forum so please be nice to me :-)

    We paid off our mortgage early (6 months ago) with overpayments and now have a spare £400 per month as a result. Where is the best place to save this money or what is the best thing to do with it? At the moment we would like it to be easily accessible but we are only 40 years old and want to make the best of our money.

    Martin Lewis suggested a Tesco Bank Account a month ago with great interest but Tesco's stopped that before we had a chance to join.
Page 1
    • Alice Holt
    • By Alice Holt 18th Mar 17, 2:37 PM
    • 1,494 Posts
    • 1,596 Thanks
    Alice Holt
    • #2
    • 18th Mar 17, 2:37 PM
    • #2
    • 18th Mar 17, 2:37 PM
    Regular Savers?
    http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

    But also consider increasing pension contributions (once you have an emergency fund).
    Start by reviewing current pension provision and projections.
    Could you get additional employer contributions if you contributed more?
    • chockydavid1983
    • By chockydavid1983 18th Mar 17, 3:23 PM
    • 445 Posts
    • 248 Thanks
    chockydavid1983
    • #3
    • 18th Mar 17, 3:23 PM
    • #3
    • 18th Mar 17, 3:23 PM
    Congratulations on being mortgage free!
    To offer an opinion, people will need more information.

    Do you have an emergency fund of say 3-6 months expenses?
    Do you have any other upcoming big expenses?
    What pension provision do you currently have?

    It will probably end up being a combination of current accounts, regular savers, S&S ISA and pension.
    • ColdIron
    • By ColdIron 18th Mar 17, 4:04 PM
    • 3,470 Posts
    • 4,093 Thanks
    ColdIron
    • #4
    • 18th Mar 17, 4:04 PM
    • #4
    • 18th Mar 17, 4:04 PM
    Nationwide will give you 5% on up to £2,500 with their FlexDirect current account for a year, this also gives you access to their 5% Regular Saver

    Do either of you pay 40% tax? If so I'd look harder at the pension
    • jimjames
    • By jimjames 18th Mar 17, 5:20 PM
    • 12,101 Posts
    • 10,556 Thanks
    jimjames
    • #5
    • 18th Mar 17, 5:20 PM
    • #5
    • 18th Mar 17, 5:20 PM
    If you already have emergency funds which presumably you must do if you've been overpaying then investments would be the next logical step either in pension or S&S ISA.
    What savings do you have already? If you're looking at Tesco, which other accounts have you already filled?
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Cat7476
    • By Cat7476 28th Mar 17, 8:25 PM
    • 2 Posts
    • 0 Thanks
    Cat7476
    • #6
    • 28th Mar 17, 8:25 PM
    • #6
    • 28th Mar 17, 8:25 PM
    Thanks for your help. We have brilliant pensions where our employers contribute greatly. So this area is sorted.

    Yes we have 3 months additional monies for any unexpected emergencies in our current account.

    Neither of us pay 40% tax.

    We will need to upgrade our car within the next 18 months (will, as usual, pay cash for this with money we already regularly put aside).

    I hope that information helps!
    • Anonymous101
    • By Anonymous101 28th Mar 17, 9:17 PM
    • 978 Posts
    • 346 Thanks
    Anonymous101
    • #7
    • 28th Mar 17, 9:17 PM
    • #7
    • 28th Mar 17, 9:17 PM
    Thanks for your help. We have brilliant pensions where our employers contribute greatly. So this area is sorted.

    Yes we have 3 months additional monies for any unexpected emergencies in our current account.

    Neither of us pay 40% tax.

    We will need to upgrade our car within the next 18 months (will, as usual, pay cash for this with money we already regularly put aside).

    I hope that information helps!
    Originally posted by Cat7476
    Well done one being mortgage free so young, that's fantastic.

    So what next? Well you say you have brilliant pensions but, and not to be condescending in any way, have you checked these out thoroughly? My employer contributes to my pension but I still make further AVC's as I don't think it'll provide sufficient income without these.
    Also with regards pensions even though you're not 40% tax payers they still make extremely tax efficient ways to save so could be worth increasing your contributions.

    Following on from a pension review I'd look at opening a stocks and share's ISA if you don't already have one. With a bit of reading and investing, particularly in funds, doesn't have to be as complicated as you might first think.

    To be honest since you're already in a good position regarding cash put aside for an emergency I would shy away from holding too much cash. Especially as you'll now be saving for a point sometime in the future and not something you imminently foresee. The longer the saving period the less efficient saving in cash becomes.
    • Sean473
    • By Sean473 28th Mar 17, 9:27 PM
    • 70 Posts
    • 31 Thanks
    Sean473
    • #8
    • 28th Mar 17, 9:27 PM
    • #8
    • 28th Mar 17, 9:27 PM
    Nationwide current account and once full the regular saver of theirs which gives 5%!
    • unitedwestand
    • By unitedwestand 28th Mar 17, 10:02 PM
    • 163 Posts
    • 129 Thanks
    unitedwestand
    • #9
    • 28th Mar 17, 10:02 PM
    • #9
    • 28th Mar 17, 10:02 PM
    Mortgage Free - What Next?
    Personally I'd spend the first, what otherwise would be mortgage repayment sum on a big vat of Ben & Jerrys cookie dough ice cream and munch my way thorough it with a giant soup spoon... just because I can congratulations
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