Mortgage Balance v Savings Balance

gallygirl

Em, I'm category E :rotfl: - don't overpay main mortgage accounts (well, probably around £50 a month OP) but bung it all into offset after I've filled ISA savings (which are also earmarked for mortgage). Wish I'd done this years ago when reg savers were 6 & 10% .

Still, look on bright side - I couldn't afford to do it then and at least I'm doing it now

bulletproof_1979

wynnvegas wrote: »

I'm a hardcore A fan here. It makes a lot of sense for us to be C as well as our mortgage rate is 1.39% at the moment but there's no amount of money going to beat the feeling of not having a mortgage....

Cheers,

Billy

I guess you'll be a keeping a couple of quid on the mortgage till the end of the term though? Just thought I'd mention it in case you hadn't considered it - that way you've got easy access to cash at the same rate as the mortgage i.e. very cheap loan in the event of an emergency...

katsu

We are C - have an emergency fund ISA we are growing incase of job losses, a next year's bills ISA and are also saving towards lump sum OPs (Santander only take £500+ chunks)

hillcats

Again, we are a mixture.
We are overpaying, whilst also increasing our offset savings every month...

*Jellie*

We're option D too. Makes most sense for us financially at the moment to offset.

wynnvegas

bulletproof_1979 wrote: »

I guess you'll be a keeping a couple of quid on the mortgage till the end of the term though? Just thought I'd mention it in case you hadn't considered it - that way you've got easy access to cash at the same rate as the mortgage i.e. very cheap loan in the event of an emergency...

Hi Bulletproof,

We had toyed with the notion of keeping the mortgage open with a notional amount but, as there's no ERC, no mincing about with deeds and in finding out that accessing the overpayments isn't very easy, we've decided to hell with it and the whole lot is going. I'm continuing my cavalier approach on the "what's the worst that could possibly happen" road to doom with no safety net but I have the full intention that we won't ever look at any form of loan again. If the worst case scenario were to happen and we were both to lose our jobs and never find new ones, we'd manage without the holidays, home improvements and bigger house - just wouldn't be much fun!

Cheers,

Billy

golfiematt

im definately an 'a'. Maybe im on my own here but the stress of having a mortgage can be unbearable at times, to clear the mortgage in terms of £££'s would be priceless to me.

gavinm79

just cleared my debts and am about to face this very conundrum. i have a mortgage of £157k which is interest only but flexible so i can overpay. on a tracket at 1.5% so happy days at the minute.
after monthly outgoings im left with about £2000 a month to play with. do i put every penny off the mortgage and try and smash it while rates are low? do i pay a few hundred a month into ISAs? do i start putting serious money into my pension?
cant decide between £2000 a month off the mortgage or perhaps £1000 off mortgage, max cash ISA and rest into a pension. any advice????????!!!!!!!

bulletproof_1979

gavinm79 wrote: »

just cleared my debts and am about to face this very conundrum. i have a mortgage of £157k which is interest only but flexible so i can overpay. on a tracket at 1.5% so happy days at the minute.
after monthly outgoings im left with about £2000 a month to play with. do i put every penny off the mortgage and try and smash it while rates are low? do i pay a few hundred a month into ISAs? do i start putting serious money into my pension?
cant decide between £2000 a month off the mortgage or perhaps £1000 off mortgage, max cash ISA and rest into a pension. any advice????????!!!!!!!

I'd always fill up the yearly ISA cash allowance first - you never know what your situation will be in the future and it could be very useful to have a big pot of tax free money!!

With the leftovers I'd use it to make overpayments on the mortgage *except* because you're paying so little interest on the mortgage, stick the overpayments in a seperate savings account rather than directly off the mortgage - that way your up on the deal. The only pitfall is you've got to remember this money is essentially spent and not available for spending. An additional upside to this approach is that you've got a rainy day fund for any real emergencies.

taxi73

i am not in the categories in the OP...my mortgage is an offset tracker at 0.99% so not worth overpaying.
So I've filled mine and DH ISAS with £5100 each at 3% and put the rest in savings at 2.8% untilI have enough to pay it off.
This seems like the right thing to do rather than put it in the offset.