3 Year Savings Plan

isofa

sloughflint wrote: »

I'm one of those too.
Look at it this way. When the relevant net savings rates are better than the mortgage rate, if you hold on to the cash, you'll owe money for less time in the long run;)

I guess so, paying interest is so sickening! :beer:

christabelle23

Thank you for all your replies. I'm at max overpayment for mortage as per Nationwides terms. On normal tax rate (nurse in NHS) so will take advice and put money into highest rate notice account until I remortage in 2011 then reduce term. No other debts except car loan.Thank you again folks

Mikeyorks

isofa wrote: »

OK I do understand the points of view here and agree -

I tend to have 1.5 of my feet in your camp!;) But there is another factor (which does not appear to apply to the OP) :

In the next couple of months I'm going to be paying out inheritances to beneficiaries of a Will, where I'm the Exor. One of those beneficiaries has the rump end remaining of a long term Mortgage ..... and will be asking advice on the best deployment of the lump sum.
The advice will be to pay off the Mortgage (SVR) ..... but only if she has the discipline to then place the monthly Mtge payments into a Savings Account for the (5 years or so) remaining term. Otherwise the benefit to her of the inheritance will essentially be frittered.

As I suspect her financial discipline is questionable ...... I think I will be suggesting the Mortgage continues to come out of current earned income. And an ISA (she doesn't have one) + fixed rate options are the best place for the lump sum