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Using overpayment fund for medium term savings?
pippa80
Posts: 248 Forumite
Hello lovely mfws!
Me and my OH have just moved into our first home with a mortgage. After being inspired by lots of your stories, we have plans to make regular overpayments of £190/month.
We also have a few things that we want to save for in the next year or two (a new boiler and an overseas holiday). Does it make sense to use our overpayment feature to save for these? The 'should I pay off my mortgage' calculator says that rate of savings interest we would need is 5.9% to make that worthwhile, and there's no way we'd get that these days!
My main concern is that it would be awful to take money out of the overpayment fund! Also that it might be a hassle.
We have a Co-op mortgage and it says there are no fees for withdrawing funds from the overpayment fund.
Do any of you have thoughts on this? Or use your overpayment fund for medium term savings?
Me and my OH have just moved into our first home with a mortgage. After being inspired by lots of your stories, we have plans to make regular overpayments of £190/month.
We also have a few things that we want to save for in the next year or two (a new boiler and an overseas holiday). Does it make sense to use our overpayment feature to save for these? The 'should I pay off my mortgage' calculator says that rate of savings interest we would need is 5.9% to make that worthwhile, and there's no way we'd get that these days!
My main concern is that it would be awful to take money out of the overpayment fund! Also that it might be a hassle.
We have a Co-op mortgage and it says there are no fees for withdrawing funds from the overpayment fund.
Do any of you have thoughts on this? Or use your overpayment fund for medium term savings?
0
Comments
-
I would say yes do it that way.
BUT be prepared for the facility to withdraw funds being taken away.0 -
Gosh really? I hadn't considered that they might do that! Do banks withdraw flexibilities often if you use them?0
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