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Advice Kindly Sought
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bfgun
Posts: 238 Forumite


I have a tracker mortgage which follows base rate at 0.99% so the rate I pay is 1.49% which is extremely good.
I have about £65K outstanding and I pay off as much as I can.
If I increase my current amount by £600 per month it will be cleared by the end of 2014.
However, I am wondering whether I could make better use of that money and the extra that I currently already pay above the standard amount due by putting it elsewhere and getting a better return because, presumably, if I find an account or an ISA that pays 3% I would be earning more than my paying it direct to my mortgage??
That's my thinking but would appreciate any advice you may have.
Thanks
I have about £65K outstanding and I pay off as much as I can.
If I increase my current amount by £600 per month it will be cleared by the end of 2014.
However, I am wondering whether I could make better use of that money and the extra that I currently already pay above the standard amount due by putting it elsewhere and getting a better return because, presumably, if I find an account or an ISA that pays 3% I would be earning more than my paying it direct to my mortgage??
That's my thinking but would appreciate any advice you may have.
Thanks
0
Comments
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Bang it in the ISA. Or a high rate monthly saver (such as First Direct or HSBC) and then in to ISA on maturity.
Make sure you keep a close eye on the interest rates of both ISA and mortgage. This may include transferring the ISA from one provider to the other (e.g. when bonus expires).
When the mortgage rate exceeds the ISA/net savings rate withdraw and repay the mortgage debt.
The gain is close to £100 in interest in the first year. This could grow in future years if you can maintain the same interest differentials.0 -
Unless you have a mortgage term of less than 5 years you will struggle to clear it by end of 2014 by overpaying by £600 a month.
Save into ISA and regular savers0 -
Unless you have a mortgage term of less than 5 years you will struggle to clear it by end of 2014 by overpaying by £600 a month.
Save into ISA and regular savers
Hi,
That was the amount requested by my lender to clear the mortgage by December 2014.
I already overpay on my required repayment, I currently pay £1400 per month, and my lender quoted an increase to £1960 per month to clear my mortgage in December 2014.
My mortgage rate is 1.49%. Of course if the base rate increases then I will have to up the repayments to hit the December 2014 target.0 -
Utilise your ISA allowance first. Then consider other savings accounts.
Aldermore Bank offers good instant access and short notice accounts with easy online access.0
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