Fixed rate or Tracker Mortgage

Gorgeous_George

jennfercain wrote: »

I am on a 2.5% rate at the mo and overpaying like mad, its is knocking years off my mortgage and helped me to go from negative equity to decent equity.

Doesn't Martin always advocate that we over pay???

It's just a question of maths. If you can earn more than 2.5% after tax and fees, it is better to do so.

First Direct's regular saver allows you to save £300 at 5% (4% after tax for a basic rate tax payer). When the 12 months are up, stick it in a cash ISA (with instant access if you wish) at 3%+.

If you can average 3.75% after tax that is 50% better than overpaying.

GG