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Mortgage overpayment vs saving

I have a nationwide mortgage and have been make overpayment of £500 for some years, (now £20000) Now have saving accounts in a foreign bank (since I partner is not an u.k resident) which is giving 9.40% interest over 90 month.

So, leave money in the nationwide mortgage at 2.98% (current mortgage £225000 would push it back to £245000)
OR
Put £20000 in the foreign account at 9.40% net.

I don't know which would better.

Comments

  • Wh05apk
    Wh05apk Posts: 2,938 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    9.4% over 90 months? so that's about 1.2%pa? if so no brainer to repay the mortgage, unless you think you might need the capital back?

    Make sure you leave yourself enough emergency funds.
    I am a mortgage adviser.
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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