Mortgage overpayments vs Child Savings?

BigApples84

Hi All,

Apologies if this is in an inappropriate section. My quandary is what to do with the following set of circumstances; My first child is due imminently, me and my fianc! are financially sound enough that the Child Benefit of £20.70 per week, we can afford to save.

What does everyone think is a better use of this money, overpay on the mortgage (currently at £149,500 at 2.39%, 19 years to go), or stick it in child savings (either JISA or savings, roughly 3% at the moment).

Is there something I am overlooking in thinking there is more to it than just the interest rates trade off? Would I be financially better of in interest saved on mortgage compared to interest earned from savings, albeit in 16-18 years time?

Any advice would be greatly appreciated

StuC75

You would be financially better for the savings on the interest on the Mortgage.

Whilst Your Child would be financially better off in 16-18 years time when they can access the savings!.. As its not really a savings platform for your benefit, but is in fact for the child to use..

BigApples84

Thanks StuC75, I neglected to mention that if I went down the overpayments route, as soon as the mortgage was finished, we would then be aiming to save the equivalent amount, as if we had been saving for 16-18 years for the kid. Just trying to figure out how to get the best value really.