Advise me please....mortgage free wannabes

edinburgher

But you're better off keeping it in savings.

There's nothing to stop you saving the money instead and OPing the moment it ceases to become profitable to do so.

This would maximise mortgage slaying, albeit you need to hold off for a while.

I know it feels counter intuitive, but the best way to kill the mortgage is whatever makes you the most with no loss.

Saving at a rate better than your mortgage is exactly the same as OPing but with the added security that you can get the money back at a moments notice if needed

Rates this low are a once in a lifetime event.

pjread

If I was paying 1.13% I'd be saving rather than OP'ing, I think...

teabody

Perhaps put the money in a santander 123 account earn 3% and use some of the interest earned to overpay each month until your rate ends?

ElusiveLucy

I also have a low rate (0.75% above BR, so 1.25% at the moment). I overpay each month, reduce my term and save. As a higher rate tax payer unless I go for the Santander current account, which I don't want to do, I would struggle to get a better savings rate, so I work on the basis that I am doing a bit of everything each month!

I hope to pay my 25-year mortgage off 10 years early. I am currently nearly 13 years in, and have already reduced the term by 5 years and have been overpaying to reduce the term on a monthly basis since then. I need to calculate how much I have saved in interest, it must be a fortune!

I think you go for what makes you feel most comfortable. I have always OPed my mortgage, even by small amounts in the beginning because the rate dropped shortly after I took it out and I kept my payments the same. Initially I used it to reduce my monthly payment whilst still OPing, but it allowed me to build up savings at the same time until I could be sure that I could handle the regular larger amount and then I reduced the term by 5 years. since then the Nationwide reduces the term each time I OP £500 so it is gradual and automatic. Works perfectly for me.