2009 MF Wannabe's

zavarony

TurnaroundSue wrote: »

Right I have a bit of a quandry and hoping that you guys can point me in the right direction.

I have £2k saved to pay off my mortgage for this year (this is the 5% allowance I can make) and was planning to pay it all in one go at the end of this month. We have since had some decking done in the garden and the credit card bill has come in for nearly £800 to pay for the wood etc. Now I have a Barclays account where I can pay a maximum of £250 pm which attracts an interest rate of around 7%, but has a 12 month tie in to get that interest rate. Now have been trying to work out would it be better to not pay all my mortgage op now and catch up over the next 12 months or do I take out £800 from Barclays Saving account and lose the interest rate on that? My mortgage is £30k with a rate of 5.2% fixed?

Hope I haven't confused anyone with this, but any advice you are able to give I would be very grateful - many thanks.

I think I would be inclined to make the payment to the cc from the mortgage pot since you are paying less interest on that than you are gaining in the Savings account - you can always reduced the monthly payments into the savings account to build the mortgage OP back up??
HTH
Zav

zavarony

RosieTiger wrote: »

?? Zav for efforts on our behalf

Aw thanks Rosie :D;)

co123456

RosieTiger wrote: »

starting a new thread for this ? It would be good !

Done so it is.

determined1_2

Sleepy_head wrote: »

Number 280 dropping by to say hi! April overpayment of £954 has been made, this will be my last overpayment until August as I've reached my 10% limit, for my mortgage year, which I'm allowed to overpay with the Halifax. I'll pop my overpayment money into a savings account until then and then pay a chunk off.

Sleepy head

With the halifax, you can reduce your term outstanding to up your normal payment and therefore not hit the OP rule. Could be worth thinking about.

zebedy

Hi All, (Zav I've pm'd you this update)

I've just made my April OP - £430 this month which brings my total to £1530 this year. It's a bit behind schedule to meet my target but I've just been promoted so will be getting a higher salary from 1st May so will be able to increase my OPs from then.

I've got some big payments to make in May (new kitchen and holiday) but after June i should really be able to ramp up the OPs to achieve my target.

Grumpy_Git_4

I'm way behind target but I expected to be, current o/p as per the sig.

Nick.

Sleepy_head_2

determined1 wrote: »

With the halifax, you can reduce your term outstanding to up your normal payment and therefore not hit the OP rule. Could be worth thinking about.

Hi Determined

I have thought about this but my job isn't secure at the moment so I like the fact my mortgage payments are affordable even if my income is substantially reduced.

Thanks for the advice though!

Sleep head

emma_nottingham

Hi

Did not think I could manage it but paid another £240 off mortgage today. Will hold off an PMing ZAV until last day of month incase I manage to squeeze in another few pounds. Sig updated though.

Alion

Another £750 gone!!! It was going to be £500 but the lower repayments with the tracker at the moment are helping us overpay more

TOPAZ_2

Hi, No 167 here

My results for this month are

Mortgage Reduction £1672
YTD Reduction £7462
Current Outstanding Mortgage £162,438

Still trying to decide whether its worth putting OP's into cash ISA (still counting towards paying off the mortgage) or not. Just cant decide. Its making my head hurt - I know it should be a straight interest rate comparison, but there are so many other things that I am taking into account ...... oh well, will think about it again tomorrow

Thanks

Topaz