Should I pay off my mortgage discussion

Floxxie

DAVE1003 wrote: »

hi mate,
just transfer your isa, i've just transfered mine into the yorkshire b.s. e-isa.
i'm getting 3.4 % for over £10,000.
hopefully y.b.s. are one of the more safer banks/b.s on the market.
hope this helps.

Why? The mortgage rate is higher than the savings rate you mentioned. Alexis01 take a look at Martin's article on paying off your mortgage and that should make things clearer.

Floxxie

DAVE1003

all i was saying is that if someone has advised them on leaving it in an isa they should get it in a decent isa & not just leave it in one that ain't making anything.

Welshlassie

Check with FD to see if you can get an Offset ISA with them and transfer it across so you get the best of both worlds.

fastchris1

Hi,
First dip of the toe into this forum, please be gentle.......
I am about to inherit around £80-85K and naturally the first thought was to pay off bank loans, credit cards etc, which will amount to a saving of around £600 per month. I have a interest only mortgage of around £157K and this is supported by ISA's to pay it off in or around 2017, but I think with the current amount of money thats being put into it, wont happen.

I am considering a number of options and would appreciate some advice:
1. With the £600 a month free should I use this to overpay the mortgage (all fixed terms have expired and now on variable rate)? -Decision made by brain.

2. Should I use the remaining amount of inheritance to reduce the mortgage and change from an interest only to repayment one?- Decision made by brain.

3. Purchase more ISA's and increase the ones i do pay into?- Decision made by head!

4. Use the inheritance to take the family on a holiday abroad for the first time in 8 years, indulge my passion and buy a peformance car (spent years with the family car and kids have grown up now), basically start enjoying life with my wife, now the kids dont need us any more?- Decision made by heart!

5 A combination of 1-4?- On the fence with this one!

All of above are not necessarily in order of preference!

Many thanks

DAVE1003

number 4 mate, probably the best time to buy the car of your dreams.
& just take your wife on a great holiday.
then think about something sensibe after you've done them.

glen8

06 plate Aston Martin V8 Vantage with sub 10k miles on the clock for £36,000

considering they were up around £100,000 when new could be your ideal dream car

have a look on pistonheads.com

DAVE1003

yeah my mate's dad has just done that with an aston & saved a fortune.

Floxxie

fastchris1 wrote: »

Hi,
First dip of the toe into this forum, please be gentle.......
I am about to inherit around £80-85K and naturally the first thought was to pay off bank loans, credit cards etc, which will amount to a saving of around £600 per month. I have a interest only mortgage of around £157K and this is supported by ISA's to pay it off in or around 2017, but I think with the current amount of money thats being put into it, wont happen.

I am considering a number of options and would appreciate some advice:
1. With the £600 a month free should I use this to overpay the mortgage (all fixed terms have expired and now on variable rate)? -Decision made by brain.

2. Should I use the remaining amount of inheritance to reduce the mortgage and change from an interest only to repayment one?- Decision made by brain.

3. Purchase more ISA's and increase the ones i do pay into?- Decision made by head!

4. Use the inheritance to take the family on a holiday abroad for the first time in 8 years, indulge my passion and buy a peformance car (spent years with the family car and kids have grown up now), basically start enjoying life with my wife, now the kids dont need us any more?- Decision made by heart!

5 A combination of 1-4?- On the fence with this one!

All of above are not necessarily in order of preference!

Many thanks

Are you looking at paying off your mortgage? If so, you might want to start a new thread to get advise as it probably won't be seen by many on this thread.

If not, you could try posting on either the mortgage board or the savings board as the 'relevant experts' reside there.

Most people on this board would overpay the mortgage as that is their aim but the advice is to overpay after you have paid off your debts (assuming that they are not 0% and you don't have that money in a savings account). There are a number of good articles, including the one on the first page of this post.

Floxxie

simon_ra_w

Question. I have a tracker 1% above base £130000 interest only,rented property, should I pay off the Mortgage

jamesd

Depends on your risk tolerance. Personally with such a cheap deal I'd be putting the money into investments in the expectation of making money when they recover. Then selling the investments when interest rates rise to fight the anticipated inflation.