Sensible Advice Required

FunLovinCriminal

Hi all

So - this month I've been informed my role is being removed at work. I've to move down a level in the management levels and will be given the difference in salary for two years as a lump sum (£6k gross).

I've opened a T.s.b.account and already got £2k in it, and a is a paying 1.3% with £6k in it.

We have £100k mortgage at 2.59% fixed for another two years.

So, what should I do????

OP mortgage?
Save? Where?

comberspud

I always try overpay mortgage every month by around £100. We found it helped a lot when renewing after a two year fixed. Now we are on a variable and overpaying the same. I find the interest added is decreasing more rapidly than when I didnt overpay

I have a similar mortgage and we just renewed it and basically for every £1 borrowed we pay back £1.41 (so it states in the contract)

So would that not mean if you cleared another £5k now you would save around £2k on the long run??

Our advisor told me that if I overpaid £100 a month it would knock 5 years off

ps. We are just over 2 years into our mortgage

FunLovinCriminal

Currently OP £50 via dd every month, but mortgage has 16yrs left.

In 10yrs I will be 50. I would love to be mortgage free by then, but we also have a 9mnth old. As must as I would love to be mortgage free I do not want to neglect her.

It's all about that balancing act.

I'm considering £2k lump sum off balance and save rest. That would leave me £10k incase of emergencies!

What's everyone's thoughts??

comberspud

Very wise, never sit on the red line. Emergency money is great to have rather than having a few months of panic if something goes wrong.