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
:jMarried on 12.12.12 to the best man alive! - FACT!:j


  • getmore4lessgetmore4less Forumite
    46.9K Posts
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament

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

    ISAs for the long term tax savings.
  • 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.
    Puppy Chick wants to be mortgage free by 50! (19 years to go!)
    Mortgage Sept 2010- £139,618.94 O/payments to date £0 -- WATCH THIS SPACE!!!!
  • dimbo61dimbo61 Forumite
    13.4K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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.
  • Thank u xxx :)
    :jMarried on 12.12.12 to the best man alive! - FACT!:j
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