Save Or Overpay Mortgage

bid727

What is the best option:

Mortgage = £58143 Interest Rate Variable1.5% Min Payment £418 currently OP by
£282 pm so pay £700.

No CC Debts, Savings £10000, Save £600 pm in minimum interest Saving Acct.

Do I make the minimum payment PM? or put the overpayment/savings money into a higher interest paying savings account and make a lump sum payment off of mortgage
each year? would like to be mortgage free by 50! so five more years!:j

chirpchirp

If you can get a higher rate in a savings account then you should do this. But take a look at Martin's mortgage guide, he has a calculator which tells you if you are a higher or a basic interest rate payer the amount of interest you need to beat your mortgage rate as it's not as straight forward as just finding a rate that is higher than your mortgage rate.

As you are on a variable rate ensure you don't tie your savings into a rate for too long. Take a look at the savings tab at the top and look at the best interest rates available. Martin advises to fill your ISA savings allowance before paying extra off your mortgage.

bid727

Chirp Chirp, thanks for the reply!