Confused 21 September 2010 at 9:37AM in Mortgage-free wannabe 4 replies 800 views

zoeisababe

My mortgage has expired so we have gone on to bank of england base rate plus 0.5%, am i better keeping my payments the same, or going with their minimum payment and putting the difference in to a savings account?

Thanks peeps x

getmore4less

Savings,

Plenty of instant access accounts around 2.5%(eg egg,tesco,.....)
monthly savers are paying even more.

ISAs for the long term tax savings.

puppychick79

Well I would definately say Mortgage or half and half, we have recentley just moved and when sold the old house really benefited from paying in the extra after we dropped onto the base rate. I think take advantage whilst the rate is so low, unless that is you debts to pay off then pile the extra into that. Im on a fixed again for 2 years but still im trying to overpay where I can.

dimbo61

Have you got 3/6 months of income in emergency savings ( in cash ISA,s ) ?
If you have then you could as others have said do 50/50 and overpay half save half
That way when mortgage rates do go up ( which they will) you are already overpaying and you wont notice for a while until the rate is higher than your regular mortgage payment.

zoeisababe

Thank u xxx