quickie advice needed

lynne1307

hi there

i have managed to pay off my further advance this year taking my mortgage debt to 39k

i have 21k in savings. on phoning my mortg. company today, they have said i can overpay by 8000 this year and 8000 next year

i have 10k in a savings account that has been there for 3 years (part of my redudancy package) and the rest is in an ISA

so, question is,
should I pay off 10k, 5k this year and 5k next (as in 5k today !)
or 2k this year and 8k next,
and would you do it in installments, or in one go?

Hoping to be mortgage free in 3 years with a fair wind....

thanks
L

elantan

how do the bank apply the interest to the mortgage, daily, monthly etc ?

how much interest can you get for your money elsewhere?

lynne1307

hi
can't get anywhere near the interest saving than the mortgage rate.

elantan

Best pay that then ... and if it were me i would put as much in to it as possible this year to make the money work harder for me, i would also put it in a lump sum to make it work harder but it's entirely up to yourself

do you have an emergency fund ?

edinburgher

do you have an emergency fund ?

Good question, as OP has already been made redundant at least once!

lynne1307

I have 11k in an ISA which can be used for emergencies.

elantan

Well as i say entirely up to yourself, if it were me i would put the max i could into the mortgage just now so that the money worked for me, that would be if i had enough money left for emergencies and was happy with my other investments as well ( pension etc) ... but thats me everyone is different

good luck with your decision