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Save Or Overpay Mortgage
bid727
Posts: 3 Newbie
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
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
0
Comments
-
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.0 -
Chirp Chirp, thanks for the reply!0
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