Do I qualify for a mortgage pig do you think?

alfiesmum

Hello everyone,
We have a mortgage pig, (and various other animals dotted around the house) for all our spare change. But as our mortgage is a 10 year fixed rate at 4.98%, we have decided to save the money instead in a seperate account, at a higher rate of interest, rather than paying straight off the mortgage capital. Our aim is to have enough in savings at the end of the ten year term, to pay the mortgage off in full. Can I still join in the 'mortgage pig' do you think. I think it's a great thread - took some reading from the start mind you!!

Alfiesmum
xx

comping_cat

I think that is a brilliant idea - you are using the same prnciple, just using the savings in a different way - but the aim is the same!!!!!
Hope you get a good savings rate - who is your mortgage with? i have 3 1/2 years left of my fixed rate, but would love to extend it, something im thinking of looking into, seeing that interest rates seem to be on the rise!!!!

alfiesmum

At the moment we're just at the start of a 10 fix with Woolwich. We're allowed to overpay by 5% per year on 86000, (which is quite a lot for us). But savings seems more the way to go. Shall start to post my progress in the piggy posts now then!! Thanks for your reply xx

Bargain_Rzl

Hiya alfie's mum, I am doing the same thing. I am on a 2yr fix at 4.89% with Nationwide until December 2008. My Lloyds TSB Monthly Saver is paying 8% (6.4% net) and when April comes around, I should be able to get 6.5% on an ISA too. You can see from my figures that there is NO point overpaying directly into my mortgage at this point!

Just make sure that you compare the savings rate AFTER tax, or you may not be getting as good a deal as you think.

alfiesmum

Bargain_Rzl wrote: »

Hiya alfie's mum, I am doing the same thing. I am on a 2yr fix at 4.89% with Nationwide until December 2008. My Lloyds TSB Monthly Saver is paying 8% (6.4% net) and when April comes around, I should be able to get 6.5% on an ISA too. You can see from my figures that there is NO point overpaying directly into my mortgage at this point!

Just make sure that you compare the savings rate AFTER tax, or you may not be getting as good a deal as you think.

That's good advice, thanks. Since discovering the forum, I've only really realised how little attention I gave our finances before now. Not any longer!! I'm on a crusade! And as mortgage is our only debt, thats what I'm crusading :rotfl: