Overpay or save

Hi can someone give me some good advice please, i have 14000 left on my mortgage and the rate is 1.75 tracker, i also have isa,s which pay more interest, would it better to pay off the mortgage or save as much as possible until thing change.
Thanks

Replies

  • robedha1robedha1 Forumite
    156 Posts
    From reading what others say on here I would save in the ISA as the interest rate is better. You'll be better off in the long run. I'm sure someone will come along soon and let us know if I'm right.
    Starting mortgage balance 22/04/2013 £71,250
    Overpayments to date £410
    Current mortgage balance £70,650
  • QB_WolfQB_Wolf Forumite
    722 Posts
    Forumite
    Start Date 16/09/2015
    Original amount outstanding = 225,000 Current amount outstanding =199,812
    Original LTV = 64% Current LTV = 49%
    Original Pay Off Date = Sep' 36 New Pay Off date = Sep' 36
    Original Dly Int = 17.17 New Dly Int = 17.17 Total OP = £1319.31
  • RosieTigerRosieTiger Forumite
    863 Posts
    I think you have already answered your own question as this comes up regularly on here anyway.
    If you can get a better interest rate on savings than you pay on your mortgage then keep your money.
    If its worse pay it off your mortgage.
    Ultimately I see them both as savings, but the OP is very much a longer term one in that generally its much harder to get your hands on it (unless your mortgage allows you to take them back)
    The smart advice you will see on here is always to have a emergency fund covering 3,6 or 12 months outgoings, depending on how much you feel comfortable with, before you think about doing this.
    After that whether you save in an ISA or pay off the mortgage doesn't make a lt of difference. Rate differences if your on a low rate tracker as you say, are pretty marginal.
    RosieTiger - Highest £242,000 Feb 2004 :mad:
    Lightbulb Dec 2008 £146,000 by March 2026:eek:
    MFi3T2 and T3 No 28 - Dec 2009 Start Balance £117,000
    Current Position-Fully off set by savings since March 2013
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