Savings - how much

YorkshireBoy

trailingspouse wrote: »

The important thing to bear in mind when you're overpaying the mortgage is that you can't get that money back, no matter how much you might need it, so if there are other things you feel you might need to save up for, do that first.

Is that true for all mortgage types/providers? I'd imagine some might operate like that, but not all surely?

chockydavid1983

It depends on your particular mortgage, with some you can and others you can't. You'd have to look at your mortgage docs.
With investing, while it may not be desirable if prices have just dropped/ crashed, you could always access your money pretty quickly if needs be.
You should be able to avoid that undesirable state most of the time though with a good sized emergency fund in high interest accounts.

Thrugelmir

juniordoc wrote: »

Of course you can't generalise, but OP hasn't given us much background, and its true that interest rates have never been this low, so historically there has never been a worse time to save.

Which is all very well until you have the need to borrow.

kidmugsy

Are there still "flexible" mortgages available, whereby you can later borrow back any overpayments you've made? (And is the ability to borrow back written in stone?). Failing which, are there still offset mortgages available?

Be those as they may, I'm a fan of the high interest current account + regular saver mode: it's so well suited to someone trying to accumulate an emergency fund.

jimjames

kidmugsy wrote: »

Are there still "flexible" mortgages available, whereby you can later borrow back any overpayments you've made? (And is the ability to borrow back written in stone?). Failing which, are there still offset mortgages available?

I don't know which other providers but Nationwide mortgages prior to 2010 certainly have this feature that I've used a few times.

linuxpenguins

Hello

Firstly, thank you for the responses and the generated discussion.

Some additional information - Which may help.

Savings: £200
Overpayment Reserve: Yes (On my current Mortgage; will this continue when I switch to another Nationwide product?
Salary: £23k

I will be discussing my options next week (Wednesday) with Nationwide as I seek to take out a new product with them for 5yrs.

linuxpenguins

I am fortunate enough to be able to save roughly £700 a month due to my parents helping pay the bills

linuxpenguins

Bump bump bump

badger09

linuxpenguins wrote: »

Bump bump bump

What is your question:cool:

Fatbritabroad

juniordoc wrote: »

Overpay your mortgage! No incentive to save with rates as they are at the moment. Prioritise getting yourself out of debt.

One option. Another option is to fix your mortgage for a long time 10 years and invest the money instead.it depends on your circumstances attitude to risk etc. Or a Combination