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small savings to put into mortgage or leave in savings?

We have built up a £5k saving pot to move home with, the house is on the market however Im not holding my breath that it will go anytime soon, Ive seen on here that some people are over paying there mortgage every month and my question is should I ring the mortgage company and just put it on the mortgage or keep it in the base rate savings we have? Or mortgage stands at £107k so not going to make a big dent

Comments

  • Have you played with the overpayment calculator on the site? this will give you an indication of what you would save over the term of your mortgage? Expect to be surprised :)

    And if you were lucky enough to sell your house tomorrow, then what funds do you have to move?
    Looking forward to the day I have nothing left to list on eBay
  • Al1x
    Al1x Posts: 1,653 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I would say it depends on your interest rate of both your savings account and your mortgage. If the savings account is higher interest than what your mortgage interest rate is then I would leave it in savings.

    Also it is nice to have a decent amount in savings in case any unplanned expenses arise (broken down washing machine etc)
  • Yorkie1
    Yorkie1 Posts: 12,175 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Are you hoping to port your mortgage to a new property? If so, don't pay off any more than you need to.

    If the £5K is the only savings pot you have, then I wouldn't put it beyond my reach by overpaying. You don't know what extra fees or expenses you might have in the intervening period.
  • Thankyou appreciated! It is the only savings we have so Im guessing we'd be better off keeping hold the mortgage is 3.9% savings Im not sure but its £1 a month we get in interest
  • ViolaLass
    ViolaLass Posts: 5,764 Forumite
    You should be able to get a MUCH better interest rate than that for your savings.
  • Wilkins
    Wilkins Posts: 444 Forumite
    Thankyou appreciated! It is the only savings we have so Im guessing we'd be better off keeping hold the mortgage is 3.9% savings Im not sure but its £1 a month we get in interest
    Definitely keep your savings, I would say. But you would do better to move your savings to a high interest account:

    http://www.moneysavingexpert.com/savings/savings-accounts-best-interest
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