Overpay or Save?

JF77

Hi,

Been racking my brain all weekend trying to decide what to do. I have a Lifetime Tracker +0.36% so current rate of 3.36% saving me approx £140 per month based on a loan of £127,000 over 23 years.

I have decided that an amount of £65.00 would be a good amount to overpay. I have been looking at Regular Savings ISA's as an alternative to overpaying as I have not used any of my allowance this tax year but, there does not seem to be any decent fixed rates. I am worried that any variable rate ISA would simply be reduced soon.

Any opinions would be gratefully received.

Cheers

Locoblade

We've just applied for one of these as we plan to do the same thing

http://www.firstdirect.com/savings/regular-saver-isa-overview.shtml

7% fixed for 12 months, but Im not sure if its available unless you also bank with FD.

JF77

This is an excellent deal but, according to their website you do have to be a 1st Account holder. Maybe worth thinking about changing banks but I find this a bit scary as been with RBS for 13 years.

Just clicked on your calculator and found it helpful.

Cazza

Personally, for me the decision would be based on whether I had savings already. If you overpay on your mortgage, unless it's an Offset account you won't find it easy to get the money out again, should you need it, therefore it might be worth stashing it away somewhere where you can get to it if the need arises. Also depends on how strong your will power is!

JF77

Good point but, I am used to not having the money as it went straight into my mortgage and, that is why I am keen to make the most of the current low rates.