Is it worth putting £5000 in?

afroscot

Afternoon folks!

Wondered if anyone could give some advice. I have £5000 which I was going to put into my mortgage. I have £70000 to repay and currently on 2.9% until December. We have approx. 11 yrs left.

Is it worth putting it in now since the current deal is about to end and we will be changing mortgage anyway?

Thought appreciated.

ic

One thing to consider, might you need that money again later? My own mortgage allows overpayments and then subsequent under payments or payment holidays. However, if I move the mortgage to a new provider, that record of overpayments is lost, and I have no way of accessing that money.

If you won't need access to it, overpay it. If its the only savings you have, stick it in a good account, then overpay/offset against your new mortgage in the new year (IMO).

Dave_the_Ginger_Cat

Are you a taxpayer? And how would you store it otherwise?

Yorkie1

Do you have 3-6 months' worth of outgoings in a rainy day fund?

If not, prioritise that.

If so, what savings rates can you get on your money? Will you need the money for anything else? Do you have a pension set up? As others have said, are you a taxpayer (and at what rate)?

Don't look at the mortgage in isolation, it's your overall financial position which is most relevant.