To OP or not to OP 25 September 2017 at 9:29PM in Mortgage-free wannabe 2 replies 449 views

wendy_ann1983

Hi wise ones,
so, i was overpaying my old mortgage but that was a no brainer as it was at 5.19% fixed for 2yrs but the new one is only 1.39% for 2yrs. I have a number of different accounts i currently move money around that pay between 1.5% and 5%. I haven't overpaid at all this year as i figured it was best to save and then pay off a big lump at the end of the deal with the savings but now i'm not so sure.
What do you all think?

louloubelle79

Good point ...I guess to save in higher interest would be more beneficial then pay lump sum each year maybe? I'm a MFW newbie so others may have more accurate advice.

Boredatwrork

Pay off the debt sitting in the account/mortgage with the highest % Or the savings with the highest %..whatever is larger.
Pretty straight forward as a general rule of thumb.

Just check the savings don't come with some clause that the money has to be kept in there or is locked in there for a time period that may not suit your aims.