What shall I do with 5 grand

pam_smith

Any ideas of what to do with 5 grand that I saved up to put towards
my mortgage till I found out it would only save me £34 a month!!!

Any ideas?

Wookey

Over how many months is this £34 a month saving ? 5k tied up in a fixed rate bond say with an interest rate of 3-4% would only be earning you between £10-15 a month so your automatically £19-24 a month better of by paying it of the mortgage and its 5k you have to pay eventually.

DiggerUK

pam smith,
If you have no emergency savings then you need to allocate the 5K in an instant access, or at most 30 day notice A/C. Have you used your cash ISA this year.

Otherwise pay down your mortgage. Even using the 34 quid as an overpayment if possible. An overpayment each year of 400 becomes 2K in 5years, think about it.

Interest rates can only go up from here. Debts have to be cleared sooner or later. Avoiding that simple reality is why so many people are in it right now.

Best of fortune.

opinions4u

What rate is the rate on your mortgage?

If the rate is higher than you will receive on savings accounts (and you don't want a contingency fund) then it is still better to reduce the mortgage debt (assuming no penalties for doing so).

Instead of reducing your monthly payment why not ask them if they would reduce the term instead? Then work out how much more than £5k that will get you!