overpay or save

bazzbradley

I'm currently on a mortgage rate guaranteed to be 1.99% above the BOE base rate for life, with the base rate at 0.5 % I'm in a good position to overpay every month. Should I do that or should I save the money into a First Direct regular saver account for a year at 8% then take the money out in 12 months time and pay that off the mortgage?

:beer:

HappyMJ

bazzbradley wrote: »

I'm currently on a mortgage rate guaranteed to be 1.99% above the BOE base rate for life, with the base rate at 0.5 % I'm in a good position to overpay every month. Should I do that or should I save the money into a First Direct regular saver account for a year at 8% then take the money out in 12 months time and pay that off the mortgage?

:beer:

Definitely save as much as you can. I wouldn't pay anything off the mortgage even after 12 months. You can find many savings accounts that pay more than 2.5% net.

kidmugsy

Seconded: leave the mortgage alone and save elsewhere while the interest rate differential is favourable.

bazzbradley

Thanks, thought that was my best option but wanted to be sure I wasn't missing something obvious, before opening the savings account.