Decent bit of money to save or overpay mortage - Suggestions?

coffee_king

Hey all
Between myself and my partner we have about £20k of saving sitting in ISA's now earning no interest. This years ISA rates are looking awful. So can anyone else suggest what else we could do with this money either to save or pay off our mortgage etc? We've got a 2 year mortgage fixed at 3.54% until about March 2015 so it would make more sense to make an over payment? My bank says I'm able to repay upto 10% of the outstanding amount within a 12 month period.
We've got left a 133K mortgage over 21 Yrs 9, so I assume we can pay 13K back without a charge.

Any advise out there either on savings, or mortgage repayments?
thanks

helptoyou

This is a matter of opinion , I personally would pay 13k of the mortgage if you have no other short term debts credit cards personal loans etc. and keep the 7k available in an ISA as emergency funds .

atush

It all depends if this is every penny you have, and if you have a pension.

I'd say you need to keep half of it in cash as an emergency pot, but the other 10K could be used to fill S&S isas, pay off mtg, pension contribs or a combination,

sharpe106

Agree with the pension comment but if you do not already have one, if you already have one I would over pay the mortage and put rest in either ISA or the Santander 123 account so easy access.

jamesd

Why not invest instead of saving? Plenty of interesting options available within a stocks and shares ISA, including many that don't involve using shares.