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Mortgage Overpayments or Savings
Latsie
Posts: 30 Forumite
I have already used my cash ISA allocation for the year. I am currently making overpayments of £350 on my mortgage each month but I am wondering if this is the best thing to do. I am on a SVR of 2.49% (and it has been at that level for the last year). I have £153k outstanding on the mortgage. I purchased the house 3 years ago for £208k, but I wouldnt be surprised if its value now was approx £200k. Should I just keep making these overpayments or should I put the annual sum of £4k in a savings product. Advice welcome.
0
Comments
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It depends on your tax status as well.
If you are a higher rate taxpayer then you'd need a higher rate to make savings worthwhile as you won't pay any tax by overpaying mortgage.
It also depends if you will need the money as not all mortgages allow overpayments to be withdrawn. I personally overpay rather than save.Remember the saying: if it looks too good to be true it almost certainly is.0 -
Is there any chance of getting a lower interest rate on the mortgage if you drive LTV below 75% or 60%? That could give you pretty good value.Free the dunston one next time too.0
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