Mtg v savings

Adkad

Hi, I'm new to this forum but wondered if someone could give me some advice. I have just come into some money which would allow me to pay my outstanding mtg off (100k). I'm trying to figure out whether I should just pay off my mtg or put the money into savings.

I've not done too much research yet as my fixed rate mtg doesn't finish until April. I have an excellent credit rating and have seen 'stoozing' mentioned on this forum and wonder if there is a better way to use my 'pot', whilst gaining interest yet reducing or removing my mtg. Or should I just pay off my mtg and put the remainder into savings.

Cheers

edinburgher

• What's your current mortgage rate?
• Are there any early repayment charges?
• How is your provision for old age looking (i.e. pension or other)?

Stoozing basically means you spend money on 0% credit cards instead of spending the cash. You keep the money that you would have spent and pay it into the best savings account/s you can find. When the 0% spend offer expires, balance transfer to another card if it's profitable to do so after fees, or pay it off and start again.

Adkad

Hi, thanks for the reply. Mtg is currently 3.5% but finishes in April so I won't do anything until then anyway. I do have an nhs pension but do expect some of this money to assist as I'm 44 so have good few years left yet. I just cannot figure out which is best to do.

edinburgher

What's your loan to value? You may be able to remortgage at a better rate, or use some of the money to get down to a lower rate. As it stands, whether you OP or save is six and half a dozen - the best rate you can get on cash is currently with Nationwide @ c. 3.9% after tax.

The maximum they'll take at that rate (Flex Direct accounts) is 3*£2,500 if you have a partner (one acc each, one joint).

Adkad

Hi,

LTV is 50%. I have thought about using my funds to reduce mtg and see what the best rate I can get is. Thanks for the advice re Nationwide, I'll have a look at it. I was going to look at a couple of ISA's as well.

I'll keep reading through these forums and see what's best. Thanks again for your advice.

Cheers

edinburgher

50% LTV should make all the best deals available to you, shop around.