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Another overpayment dilemma!
Ali-OK
Posts: 4,073 Forumite
Well, after sorting myself earlier this month with where to overpay on my cc's, I've found myself in another dilemma.
My mortgage is on a fixed rate until the end of this month - it then goes to 1.25% over BR for a year..so that'll be 6% as things stand and the likelihood is rates will rise anyway in the forseeable future. Within that I can make a one off overpayment in Jan (min £500, max 10% of mortgage..no chance of the latter though!)
Now, my cc's are at 3.9% LOB, 5.5% LOB and 5.9% LOB...so, do I:
(a) Just keep going with overpaying on the cc's and forget about the mortgage for now (penalty to move to another product is £5K :eek: so not an option for another 12 months); or
(b) Put my overpayments into my savings account (half to Lloyds at 8%, half to Sainsburys Internet Saver at 5%) until early Jan, so I can pay about £1500 off the mortgage?
What's everyone's thoughts?
Thanks very muchly!
My mortgage is on a fixed rate until the end of this month - it then goes to 1.25% over BR for a year..so that'll be 6% as things stand and the likelihood is rates will rise anyway in the forseeable future. Within that I can make a one off overpayment in Jan (min £500, max 10% of mortgage..no chance of the latter though!)
Now, my cc's are at 3.9% LOB, 5.5% LOB and 5.9% LOB...so, do I:
(a) Just keep going with overpaying on the cc's and forget about the mortgage for now (penalty to move to another product is £5K :eek: so not an option for another 12 months); or
(b) Put my overpayments into my savings account (half to Lloyds at 8%, half to Sainsburys Internet Saver at 5%) until early Jan, so I can pay about £1500 off the mortgage?
What's everyone's thoughts?
Thanks very muchly!
Back on the DFW Wagon:
CC - £3,300 on 0% til 04/2020
CC - £4,500 on 0% til 02/2019
Loan - £12,063.84 as at 4/1/18
CC - £3,300 on 0% til 04/2020
CC - £4,500 on 0% til 02/2019
Loan - £12,063.84 as at 4/1/18
0
Comments
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Looks to me as though the Llloyd's Saving account is the clear winner.I am NOT, nor do I profess to be, a Qualified Debt Adviser. I have made MANY mistakes and have OFTEN been the unwitting victim of the the shamefull tactics of the Financial Industry.
If any of my experiences, or the knowledge that I have gained from those experiences, can help anyone who finds themselves in similar circumstances, then my experiences have not been in vain.
HMRC Bankruptcy Statistic - 26th October 2006 - 23rd April 2007 BCSC Member No. 7
DFW Nerd # 166 PROUD TO BE DEALING WITH MY DEBTS0 -
Is the 8% the after tax rate?
Another thought, if you can do it of course, is to consider reducing the term of your mortgage so that your repayment would equate to what your repayment is now plus your overpayment, if that makes sense.2014 Target;
To overpay CC by £1,000.
Overpayment to date : £310
2nd Purse Challenge:
£15.88 saved to date0
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