mortgage payments

gregsgoals

Hi I currently have an average sized mortgage paying just above 0.5 %. I have £15,000 in my bank account. Do I pay the sum off my mortgage to reduce the monthly payments or leave the money where it is

Cannon_Fodder

Is the bank account giving you more than 0.5% interest, after tax ?

If so, leave it there. Putting some into ISAs for a better, tax-free interest rate, might be worth considering, too.

When mortgage rates rise and pass above your bank account rate is the time to pay some off.

Although, you should keep a 6-month emergency fund, irrespective of interest rates etc.

HarrowArrow

But, think ahead too - by knocking off a lump of mortgage, you'll appreciate reduced term or monthly payments when the SVR goes up..

JimmyTheWig

Cannon_Fodder wrote: »

Is the bank account giving you more than 0.5% interest, after tax ?

If not, move it into a decent savings account!

dimbo61

Lloyds TSB have a current account paying up to 4% before tax on balances up to £7000 and put the rest into a cash ISA some paying 2.75/3% Good Luck

gregsgoals

Thanks all will take on board all comments