paying off my mortgage

tsmiggy

I owe £2700 on a tracker mortgage and i am paying 1% above the interest rate.I also have £2100 sititng in a first direct account paying about £7 a month interest.Would it be sensible to use my savings to make a big hole in my mortgage

thanks

silvercar

Not if that is your only savings money.

Sensible to keep some cash available for rainy days.

Mr_helpful

Depends if you can get at it in an emergency. Some mortgages allow you to borrow back the money you have overpaid. Check with your lender.

kenshaz

But you could find a better rate than that.Read Martin's article on savings

Savings Accounts: Earn high interest with the best buys

I like www.icicibank.co.uk but they can be beaten.

I also like the idea of paying off your mortgage earlier ,avoiding and paying less compound interest.

Martin also has some interesting theories about emergency cash.

MortgageMamma

If you are going to invest your money OR pay off whats left of your mortgage make sure you take advice off someone qualified to give it

Mr_helpful

If your Mortgage rate is 1% above base by paying it off you are effectively getting 6.25% tax free. Now if you can beat that with an ISA or whatever then put your money in that. But remember its a good Idea to retain access to it for emergencies

Bargain_Rzl

anong wrote: »

Hi all I have mortgage information

Spam - reported.