What to do?

quanto2009

Got £40k outstanding on mortgage fixed @ 5.63 for next 3 years mortgage has 16 years to run £337 pm
Currently working on short time contract not paid well after redundancy \£15k
OH working full time 19K
Can afford the mortgage no other debts really
Have 16k in savings earning zilch
Endowment due in 2016 for about £12-16K
Would you try and pay done the mortgage with savings or continue as is,allowed 10% overpayment?

Quanto

DannyboyMidlands

With that mortgage rate you should definitely be over-paying the maximum 10% per year.

Why are your savings earning nothing? Where are they? What's the reason for not moving them? You're losing a lot of money.

quanto2009

The savings rate is 2.8 so approx £500 a year in the scheme of things is not a lot

DannyboyMidlands

So why not move the money to somewhere better?

quanto2009

That is what what I am trying to work out to get a better rate I need to tie the money up for 4-5 years for 4.5% or would it be better to use and pay the mortgage down?

DannyboyMidlands

Definitely pay the mortgage down but that stilll leaves £12k savings to deal with. I don't see why you need to tie the money up. NS&I are paying RPI + 0.5% tax free. Even my Lloyds current account pays better than 2.8%.

quanto2009

Anyone else?