Over Payment Query

Slayerx

So fingers crossed the mortgage will be completing soon.

The rate we have secured it 2.69% fixed for five years.

Due to it been a staff mortgage I under I will have to pay tax on the difference between the staff rate and the rate of 3.5% set by the HMRC.

My partner has a savings account earning 4.89% and I understand under the new rules, that as she earns under 15,600 she will be able to register an R85 and not pay tax on the interest earned and so rather than overpay on a monthly basis would it make more sense to save what we can afford to overpay by and then pay it off at the end of the year or pay it off each month?

Thanks

jonesMUFCforever

Is the new mortgage on staff terms too or on a commercial available basis?

Slayerx

Staff terms.

laurasavon

The tax you pay on a staff mortgage is based on the balance of the mortgage so probably best Tomane any overpayments just before the end of the tax year

Are you penalised for making over payments? I'm not but have a staff mortgage with a different lender so check your not restricted

I thought the new tax rules for savings were based on the interest earned rather than the savers earnings, I've not read in detail so stand to be corrected