overpayment advice pls

coffeemonster*123

I'm not much good at working out figures and % so would really appreciate any advice.

current mortgage is BOE tracker + 0.59%.
Want to overpay £500 each month, is it better to pay it straight into mortgage account or put it into a savings account (santander 3%) and then pay it off mortgage when the mortgage rates rise again?


Thanks in advance

The_White_Horse

are you a higher or lower rate tax payer?

you will save 1.09% interest on the 500 overspend - you will get 3% on the 500 in savings (less tax if not an ISA)

coffeemonster*123

Thanx for the reply.
Higher rate tax payer.

So would i be better to take the 'savings pot' element of our mortgage and put that in the 3% savings account too?
Never had an ISA