Overpay or Save vs Interest Rises

Morgage_Confused

I think in your case its quite simple....forget overpaying as you are gonna need some cash. So just put whatever you can afford into an ISA. (It is baffling why with such a small mortgage you need 2k to live on though?)

I have 3years mortgage payments as a buffer in ISA's. I had nothing left when I started the mortgage though so its something you work on as you go. Just pray nothing major goes wrong with the house for a couple of years and get saving!

MarryNuncle

Morgage_Confused wrote: »

(It is baffling why with such a small mortgage you need 2k to live on though?)

Fixed Monthly Bills:Rent/Mortgage
Fixed Monthly Bills:Mobile Phone
Fixed Monthly Bills:Land Line & Internet
Fixed Monthly Bills:Electricity
Fixed Monthly Bills:Water
Fixed Monthly Bills:Council Tax
Fixed Monthly Bills:Union Dues
Fixed Monthly Bills:Pocket Money
Fixed Monthly Bills: TV License
Regular Essentials:Groceries
Regular Essentials:Fuel
Regular Essentials:Clothing
Regular Essentials:Kids Clubs and Childcare
Regular Essentials:School Dinners
Regular Essentials: Transport
Infrequent Essentials:Car Repairs
Infrequent Essentials:Car Insurance
Infrequent Essentials:Car Tax
Infrequent Essentials:Oil and Wood
Infrequent Essentials:Propane
Infrequent Essentials:Home Maintenance
Infrequent Essentials:Pet Costs

(nearer £1800p/m)

dimbo61

You missed off buildings and contents insurance, boiler breakdown cover,
repairs, decorating, updates on kitchen,bathroom, bedrooms etc
Now you are a home owner and not renting!!!!
Save what ever you can each month

samatron

If you overpay by £55 each month for a couple of years, you will probably have saved at least £55 in interest charges alone by the end of that period.
Overpayments are always a good way to save, so long as you already have pension payments and emergency fund in place.

Trentenders

samatron wrote: »

If you overpay by £55 each month for a couple of years, you will probably have saved at least £55 in interest charges alone by the end of that period.
Overpayments are always a good way to save, so long as you already have pension payments and emergency fund in place.

But to reiterate the above points, you could easily wipe out many time more than the interest saved if an unexpected bill comes up (boiler breakdown, car insurance excess after a crash, redundancy/illness, etc.).

The difference between savings interest gained and interst saved on the mortgage is negligable, so best to keep a buffer at easy access.