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Request for a new calculator please Martin!!
DB0511
Posts: 9 Forumite
An 'Overpay Mortgage or Withdraw Repaid Capital Sum and Put into Savings Account' calculator!! Bit of a mouthful, sorry....
I have a £184,000 offset mortgage but have paid off £26,500 of it already so that the capital sum is now £157,000. I am paying this off at 1% interest.
Should I withdraw this £26,500, which is available to me at an interest rate of 1%, and stick it into a savings account paying 3% until the mortgage interst rate rises again??
That means of course that I will be paying 1% on £184,000 again rather than £157,000 but my logic tells me the savings interest earned will be more than the extra mortgage payments I'd have to pay.....
BUT - working this out on paper it seems not. I would be better off leaving the repaid capital sum amount where it is and adding to the 'offset savings account' part of it with any extra money I have!
So - a bit confused....Need a calculator please !!!
I have a £184,000 offset mortgage but have paid off £26,500 of it already so that the capital sum is now £157,000. I am paying this off at 1% interest.
Should I withdraw this £26,500, which is available to me at an interest rate of 1%, and stick it into a savings account paying 3% until the mortgage interst rate rises again??
That means of course that I will be paying 1% on £184,000 again rather than £157,000 but my logic tells me the savings interest earned will be more than the extra mortgage payments I'd have to pay.....
BUT - working this out on paper it seems not. I would be better off leaving the repaid capital sum amount where it is and adding to the 'offset savings account' part of it with any extra money I have!
So - a bit confused....Need a calculator please !!!
0
Comments
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wouldn't the stoozing calculator do this for you?0
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What will you do when the interest rates go above your savings rate?0
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Suarez,
Not the real one are you??!!!
When that happens I'll whip the money out as it would be in an easy access account and stick it back into the mortgage as a lump sum.0
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