Reduce mortgage or increase savings???

La_escocesa

Hi everyone,

Next year I'm hoping to move house and leave my Northern Rock Together mortgage behind. This is currently £68k mortgage and £8k unsecured loan.

My question is - would I be best using any extra cash I have:

a) towards overpayments on the mortgage?
b) to reduce/clear the unsecured loan?
c) into savings?

My initial thoughts are to save enough for fees and then start reducing the unsecured loan, but don't know if it would make more sense to keep the loan payments as low as they are and save up more cash for the next place (ie as I can take the unsecured loan with me after I sell the place).

Would I be best making overpayments to my mortgage and trying to increase the equity in the flat as much as I can?

I'm really not sure if it makes any difference at all which option I choose so I'm looking forward to hearing what you guys think.

Cheers!

getmore4less

Check the rate the loan goes to when you unlink it from the mortgage?

How much will you realise when you sell?