small savings to put into mortgage or leave in savings?

Maybeanotherday

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

goodmorningsunshine

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?

Al1x

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

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.

Maybeanotherday

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

You should be able to get a MUCH better interest rate than that for your savings.

Wilkins

Maybeanotherday wrote: »

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