How much should I save?

trilbee

Hello, I am after some advice.

I have £12k sat in my current account and I would like to use some of this to pay my mortgage and the rest I'd like to put in a savings account as a 'contingency fund'. I have no debts (only my mortgage) and the only financial worry I have is redundancy. I'm not sure how much to put into my savings account. Do you think 3 x monthly salary plus 3 x monthly mortgage payments is enough? I do not have mortgage/redundancy insurance.
My mortgage deal ends next month and I'll be on the SVR so I am keen on reducing my mortgage as much as I can.
Can anyone advise?

Thanks for listening.

scrooge2008

Have you an offset option on your mortgage? I have stuck my redundancy payment in the offset part and moved to interest only payments, which has substantially reduced my mortgage, but means I can get access to the money if I need it. If you can, it may be worth taking out Mortgage Insurance. It has been a godsend to me. Mine was taken out through my Mortgage Lender and paid out in a very timely and efficient manner.

trilbee

No, I don't have an offset mortgage. I like the idea of flexible mortgages but have always been put off by the higher interest rates (though I haven't looked recently). I'll certainly look in that direction, in the meantime I'll pay a chunk of my mortgage off, at least it will reduce my monthy payments and LTV ratio when I remortgage.
Thanks Scrooge2008.