Was Mortgage Free until 52!!!

A_Frayed_Knot

SueP19 wrote: »

Just wondering what the % tipping point is

How do you mean ? :doh:

bexster1975

Hello

This higher interest rate thing is one of the reasons I have offset. I get 6% on a proportion of my savings, 3% on a bigger potion etc. as my fixed rate is 2.29% it actually makes me more money in savings and gives me flexibility if needed.

Bexster

A_Frayed_Knot

My mortgage lender doesn't offer "offset" mortgages as I have asked. But think the penny may have dropped.

Still need to do a few sums, but looks more likely the way to go for me, but still need to open up an account and start paying my o/p into it.

All this just because I switched one little account that just had odd ££'s lying there for years, getting no interest at all, and within about 2 days of switching I seen 4p interest being added, and that little 4p made me think, and if I manage to get their switch bonus as well, then that's another little lump sum to be added

bexster1975

No, we are with the same mortgage provider so I am not offset as a mortgage. Fixed ( and may do so again if rates are favourable) and put the cash in a higher rate interest account. Seems like a no brainer yo me. Have the cash earning more interest than am paying on mortgage. Can pay off when I like - or use the cash if I need to.

Bexster

A_Frayed_Knot

Applied for new account - same co as mortgage lender and started switch on 31.1.16, today I logged in to my mortgage account and bank account has also been there since applying but with a zero balance.

Today there is £100 sitting as a balance and also received debit card and pin number today. Efficient or what.

SueP19

Tipping point is the point were is doesn't make a difference between the two methods, logically it would be your mortgage interest rate. But as you are charged tax on the interest at the moment it will be higher. After April that changes and interest will be paid tax free

6% is very high for an interest rate and require you having FD account. Might have a look at what my bank offers

A_Frayed_Knot

Hi SueP19

A_Frayed_Knot wrote: »

Having a bit of a "moment" here. (lightbulb)

As looking through some bank accounts to switch to and see there is one that will give you 5% interest - now sometimes I'm a bit slow and not "up" on financials, but since my mortgage has a rate of 1.89% and I can get interest of 5% am thinking of saving my o/p's to the 5% interest account (once opened) then o/p the lump sum incl interest before year ends then start again.

Ooops made a mistake - So Mortgage 1.79% and bank account could be 5% and heard there is a 6% one.

bexster1975

Hi

As far as I know the six percent is the first direct regular saver. Max £300 a month and you need the current account to access it. Then drops after 12 months to almost nothing so you have to start again with new regular saver. When I first did it, it was at 8%.

I then transfer the £3600 plus interest to Santander which is 3% on all amounts over £3000 up to £20000 plays cash back on utilities mortgage payments etc.

Bexster

SueP19

I have a 123 so will be off later to snowball the difference on that to see if it makes any difference plus will look at other non-linked savings accounts :A

A_Frayed_Knot

O/p £21.28 to even off total balance for mortgage and 2 sub accounts , OCD kicks in yet again, and have moved my EF to an account that gives me 2% interest atm. Would never have found account that pays 5% if I hadn't helped family out, so done me a favour in the long run:). Still investigating other accounts with a nice interest rates