Opinions on what to do with savings ??

Forever_Red

I currently have approx £6500 in a Brittannia savings account (one of the footy ones), £1500 in premium bonds ( "won" 3 x £50 in last 18mths), nearly £9000 coming in from surrendering an endowment policy and approx £4000 in shares.

I am in a fixed rate mortgage of 5.32% til the end of May, paying £1022pm, and then it will revert to the SVR of 3.5% (The Cheshire) and owe roughly £78000 for the next 7 or 8 years.

I have no ISA's (yeah I know :embarasse) and not much spare cash for regular savings cos it goes on the mortgage.

What would you do? Scrap the crap savings and pay off the mortgage or remortgage with an Offset account or do something totally different.

Any thoughts....

Alan

lolarentt

In the current climate (financial not meteorological!) I'd been inclined to hang onto some cash - hold the shares if they're 'blue chips' likely to pick up again. You'll probably still be able to get a better mortgage deal come mid-year, and there might be a better view of the way ahead by then!

Robert_Sterling_3

At first sight I would be inclined to pay off some of the mortgage.

missile

Why are you surrendering the endowment?

Forever_Red

missile wrote: »

Why are you surrendering the endowment?

I no longer need it as I have life assurance elswhere and I have a repayment mortgage. It seems I am throwing good money at it as the values keep dropping and they have cut and are still likely to cut the bonuses. I have already got approx £2000 compensation for being mis-sold it. The mortgage promise is also not guaranteed. I don't think that it is worth the risk anymore.

I am now planning on using the premiums to overpay on the mortgage.

Alan