We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Overpay or ISA?
Andrea75
Posts: 66 Forumite
Hi peeps,
I'm currently overpaying about £500 per month to try and make a dent in the mortgage. I have roughly £500 which I could either pay into an ISA or add to the overpayment. Really not sure which way is best? I have some savings already so I have emergency fund if required...I'm a committed MFW.
I know there are lots if money savvy peeps out there so any advice is much appreciated.
Andrea
I'm currently overpaying about £500 per month to try and make a dent in the mortgage. I have roughly £500 which I could either pay into an ISA or add to the overpayment. Really not sure which way is best? I have some savings already so I have emergency fund if required...I'm a committed MFW.
I know there are lots if money savvy peeps out there so any advice is much appreciated.
Andrea
0
Comments
-
What interest rate is your mortgage?
If the mortgage rate is higher than the ISA rate then it's better to overpay. For me I like to building up savings at the same time too.0 -
do you have a pension?
are you young or about to retire?0 -
Mortgage rate is 3.99% and I'm far from retirement. I like to have a savings nest egg too, don't we all? Never know what's for the best here0
-
If you can get 4% in your ISA, put it there.
If it's lower than 4%, then clear your mortgage, and best of luck.Feb 2012 - onwards MF achieved
September 2016 - Back into clearing a mortgage - Was due to be paid off in 32 years in March 2047 -
April 2018 down to 28.00 months vs 30.04 months at normal payment.
Predicted mortgage clearing 03/2047 - now looking at 02/2045
Aims: 1) To pay off mortgage within 20 years - 20370 -
I thought paying the mortgage would be the better option....I guess it'll be worth it in the end. Thanks for that0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards