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Should I save or Overpay

Shaken_not_Stirred
Shaken_not_Stirred Posts: 23 Forumite
Part of the Furniture 10 Posts Combo Breaker
edited 20 July 2011 at 12:15AM in Mortgage-free wannabe
I have a 97000k mortage I took on in 2007.
It was a big leap for me as my previous house only had 20K to go :)
Due to my age....touchy subject:D the term was 18 years. I did this with the condition I always kept at least 12months payments in savings (cash ISA) just incase!
Now the ISA is at 19K now and was wondering?
If I overpay can I have a mortage Holiday incase of redundancy?
Or should I just keep paying into the ISA?

Comments

  • I have a 97000k mortage I took on in 2007.
    It was a big leap for me as my previous house only had 20K to go :)
    Due to my age....touchy subject:D the term was 18 years. I did this with the condition I always kept at least 12months payments in savings (cash ISA) just incase!
    Now the ISA is at 19K now and was wondering?
    If I overpay can I have a mortage Holiday incase of redundancy?
    Or should I just keep paying into the ISA?

    After a bit of digging found my answer on website.....recon I overpay :T
  • I guess it depends on your view of risk - if you get a higher rate of interest on your savings than mortgage keep it as it is. If your mortgage is at a higher rate than savings, then clear them. Either way, 19k off your mortgage will make a huge difference in the long run - well done, regardless of your age ;)
    Feb 2012 - onwards MF achieved
    September 2016 - Back into clearing a mortgage - Was due to be paid off in 32 years in March 2047 -
    April 2018 down to 28.00 months vs 30.04 months at normal payment.
    Predicted mortgage clearing 03/2047 - now looking at 02/2045

    Aims: 1) To pay off mortgage within 20 years - 2037
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