What do I do with £1,500 - need suggestions please

wanna-be-mortgage-free_2

Hi there

I've used up my cash ISA allowance for this new tax year and have £1,500 left over. I do want to be mortgage free so do I take this off my mortgage capital or do I invest it for a while? I have two young children so could open a regular saver for each of them and get the 10% interest for one year from Halifax. My current mortgage rate is 5%.

Any suggestions would be greatly welcomed as I'm a very new newbie!

All the best

mad

Hi

If you want to be Mortgage free you would be best to pay off some of your mortgage. If you have a number of years to go on your mortgage then paying £1500 now will save you a lot in interest you might have to check with your provider to see if you can make one off payments. There are better mortgage rates than 5% and if you are not tied in it may be worth looking on the sites pages on Mortgages

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1106239308,24268,

Also look at the mortgages thread plenty of advisers on there

If you want to invest over a number of years for the childrens future then again the best place to start is the child savings section

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1089574348,16470,

At the end of the day it's your choice and would depend on if you needed the money back in a hurry etc

wanna-be-mortgage-free_2

Thanks for this. I'm tied in at the moment with the mortgage. I contacted the bank and can make lump sum payments off the mortgage so think I'll do that as you say it'll save me a lot of interest.

Cheers