whot to do

lifeis4living

hi i new to open plan but i have an open plan for £20,000 and i have £20,000 in savings ,should i pay of mortgage or just keep paying the mortage and when i finish in 8 years time i have still my £20,000 any advice pleaz

Ian_W

Hi,
Is open plan an offset mortgage? In other words if you have your savings with them they don't pay any interest on them but don't charge any on the mortgage outstanding as the two sums balance each other out? If it is you're probably better continuing this arrangement if you don't have any other savings as you have access to your money should you need it.

If it isn't, it really depends whether you can earn more on your savings than the interest rate you're paying. If you can using tax free ISA's and/or regular savers or getting into the best paying instant access accounts then you're better keeping your savings and just repaying the mortgage. If your mortgage is more expensive than what your savings earn then it may be better paying it off. However, do bear in mind that some savings are always a good idea as "rainy day" money in case the unexpected happens.

roswell

I think open plan is barlcays product that can be linked to a woolwich offset mortgage, depending on what other savings you have / job security you may want to pay off the mortgage if you have no other savings and then build your capital back up, have you got an ISA / emergancy fund??