Am I Ok saving this way?

dimbo61

Your mortgage rate is 2.55 at the moment but it wont stay at that rate for the rest of the term unless its fixed!
I would overpay what ever you can afford each month and aim to be MF as soon as possible and then build up savings and pay into pensions and enjoy life alittle more ( lots of nice holidays)
You only have a small mortgage but clearing that while still working and NOT using part of your lump sum on retirement will help you enjoy your retirement more.
As you live alone if you did lose your job then your home is still under threat if you cant pay the mortgage ( even with £200K equity) so please get overpaying now

cookie9

Personaly I would try to make a small overpayment each month in case interest rates rise before you retire. You don't mention your pension at all. Would it be worthwhile to find out about AVC - additional voluntary contributions?

I would split savings into 4 groups : Mortgage, Pension, Emergency and Fun.

Jonbvn

pocketrocket wrote: »

I have a repayment mortgage at 2.5% so my monthly payment is £140 so can easily afford to pay that and save from my earnings.

There are several cash ISA's paying more than your mortgage rate. I would suggest you fill up this before OPing your mortgage. The cash ISA limit is £5.1k per year, which equates to £425 per month.

If rates change to your disadvantage move the savings into the mortgage.

The above assumes that your job is relatively safe.

p00hsticks

pocketrocket wrote: »

Its only a 3 bed semi but if I end up on my own wont need this size so 1 or 2 bed place will do me I think with money left over I can pay of the small mortgage

But that's not going to leave you anything to "look after you in your old age", which is what you seemed to be relying on in your first post, is it ?

You need to have some sort of savings, pension or investment in place for your old age that you can use to live off.

pawlala

comping_cat wrote: »

you have enough savings to pay your mortgage in full and have a little left over. You could then start saving not only your spare money, but also your old mortgage money and watch your savings grow, knowing that you are completely debt free and the house and savings are all yours - and if you do downsize at some point, look at all the equity you can put into your savings then!

this......