What to do with £2k per month

planemad

Hi

What is best to do in the current climate with 2k p/m that I would like to save/use (no risk).

My ISA ia already maxed for the year.

I already have 5k in a 2.5% account and want to keep this as an emergency fund.

Do I continue saving and adding the £2k each month to the savings account or is it best to overpay my mortgage by 2k each month?
My current mortgage rate is 1.5% (1% above base) and allows unlimited overpayments.
I have about £120k left on mortgage and house value of £190k.
I have no other debts other than the above mortgage.

Look forward to your advice.

Thanks

Planemad

Sparx

I would overpay your mortgage a load then if you are allowed to overpay without a charge/fee incurred.. Get your mortgage out of the way and clear your other debt (if any; none by the sounds of it though..!) and you can live a life of luxury and comfort if you already have a 5k emergency fund and a maxed ISA..

Some are better off and more sound with their savings than others, good job!

Lokolo

Hows your pension?

no-i-deer

Hi- normally there would be no hesitation to say pay your mortgage off, but in the current climate if you can find an account which pays more than 1.5% after tax then you would make money. Of course interest rates may rise but something like a tracker bond of 3% with Santander would cover any BoE interest rate rise.
I'm not an expert but in a similar situation with a lump sum to invest or pay mortgage and also wondering what to do .
regards
no-i

planemad

Lokolo wrote: »

Hows your pension?

Hi

I have a company pention they contribute only.
Basically my ISA is my pention. I always put away the max every year.
I might not always be in a position to max it but I will at least save £250 p/m.

Thius should hopfully hold me in good stead for my future.

rictus123

I would go solid on overpaying the mortgage...it could be wiped clean in less than 5 years!

michaels

If you can get the santander 3.25% for account holders you are making a good profit over paying 1.5% on your mortgage, both are trackers so no risk if rates change.