Who drew out their savings to reduce their mortgage

Primrose

I'm curious. With reports of millions of pounds being withdrawn from banks recently, how many people are actually using their savings to reduce their mortgage? I'm just wondering where all this money went to. It must have gone somewhere.

dimbo61

Its all under my bed !!!
If you are now earning 1-2% on your savings before TAX and have a mortgage of 4/5/6% it would pay you to clear some of the debt.

co123456

I did this a couple of years ago when I realised that no way was I going to make more money than overpaying my 6.09% deal. Perhaps more people are becomming savvy with their money.
I'm probably in the statistics somewhere as I've been paying off some of my stoozing activities so it would look as if I'm drawing upon 'my' savings to settle my debts.

shazzany

We did - last feb tho. Probably left ourselves with too little savings to be honest but have the safety net of very nice parents if the worst happened and we couldn't get our overpayments back!

talana

Me too. Had some of my savings with Icesave :eek: , but after they went to the wall last year and I eventually got the money back I thought "right, safest place for it is mortgage overpayments". Fair to say it put me off savings accounts just a tad!

I wouldn't necessarily advocate using ALL your savings like this though, still good to have a cash reserve of some kind.

nomoneytoday

With interest rates at 1% the £1000 in a savings account will earn £10 a year.

At that rate I reckon the sales of plamsa tellies and cars will start to go back up soon...

Coveredinbees!!!!

yep we did just that, cleared out the ISA's and took about 1/3 off the mortgage. They weren't worth having money in.

rl290

Yep - cleared out the cash ISAs and paid down the mortgage.

R

tintoys

Been paying off our 10% allowed asap out of savings

Bernie

We're keeping our ISA's going - Gordo is going to be passing the big tax bucket round in the very near future, some-one's got to pay for Fred's pension and it doesn't look like it's going to be him! or Gordo! so it's gonna be you again...

StuartGMC

Our intention will be to use the savings offsetting the mortgage to pay it off; hopefully in October. We should be 100% offset June/July (already net positive at certain times in the month ) but we of course need a cash sum above this. We will then look to build Cash savings in ISAs thereafter (we can easily get both of our allowances saved before 5 April 2010) and interest rates may well rise next year. Also need cash for the time dd is 18yrs old to fund her in "whatever" she'll do for 3yrs.

Conversely, we are continuing to invest in our S&S ISAs (Funds) despite them being down [STRIKE]55[/STRIKE]45%; which is much worse than the cash position so many people are concerned about. So you may ask why?

Well, as I see it, Funds/Equities etc are cheap now and we're looking at the period of about 10-15yrs from now for these to have grown. General comments are markets will rise 6 months before the economy, but if you wait until this is obvious, you'll miss the majority of growth to be had.... so we're pound averaging but, we OP, offset and save too - there are many years ahead to consider not just this present one.