Over pay or invest elsewhere????

buckolfc

I have spent the past three years struggling to make ends meet but I can finally see the light at the end of the tunnel!

I bought a house just before the 'bubble burst', which has left me with a pretty crap mortgage product, due in part to negative equity on the property and not the greatest credit rating.

My mortgage is an interest only product. Monthly payments are £550 on a £126,000 balance, over 30 years (4 years into). I have only just turned 30.

Now that I have have found a bit of stability, I want to start paying something off my house. The lender has offered me a repayment option of £700 pm, but I do not want to commit to this extra payment long term, in case I start to struggle again.

OK so now for my question! (Thanks for reading this far down)

I have outlined £100 per month that I would be comfortable with. Should I overpay my mortgage each month? or Is there a better alternative, were I can get more value??

P.S - I understand that the overpayment will not pay off the full balance of my mortgage but this is something I will review, when I am better prepared. Don't want to over stretch again.

Thanks for you patients and answers!

getmore4less

its downt to rates.
£126k £550pm is 5.24%

You won't better that in savings.

Build up an emergency fund first.

advice_please_2

I too am 30 with young family coming to an end of 5 year fixed high!

I intend to go on their standard rate as is lower once product ends, but will bank the difference into an Isa and use it as spare if needed otherwise overpay with it on a yearly, half yearly basis type of thing.

I suggest the same and review the options when you come to end of product