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Savings v mortgage

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diceydeb
diceydeb Posts: 158 Forumite
Part of the Furniture Photogenic Combo Breaker
in Mortgages & endowments
If my savings interest rate is 2% and mortgage interest rate is 1.98 % is it worth overpaying ? I don't get penalised up to 10 % of balance outstanding?

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  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    As the differential is so low you are better off paying down the mortgage. As the mortgage interest rate is going to rise above your savings rate in due course.
  • juniordoc
    juniordoc Posts: 366 Forumite
    For now you could move up to £2500 and earn 5% interest on it. Also you can earn 3% in Tesco current accounts.
    Once your current mortgage product comes to an end you will need to re-evaluate.
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