To Pay or Not To Pay

skegvegas473

I currently have a 75K mortgage which runs out in 18 years, its on a 2.09% fixed rate for another 3 years.
I have recently come into 10K and was wondering if I should pay a lump sum off the mortgage and leave myself without any savings or should pay something off this or should I save it in the bank just in case I need it.
I can only pay 10% off the mortgage every year without incurring extra charges, I don't have any other debts and am only currently earning 0.5% interest on this money.
I have had this money for just over a year and still not sure what the best option would be.
Any advice on what I should do

LeighofMar

Hmm. I would consider putting the 10% of the mortgage 7500.00 and keep 2500.00 in savings. You kind of get the best of both worlds in that instance.

Or if you want to maximize the money, 2500.00 to mortgage. 2500.00 to savings. 2500.00 to invest and 2500.00 for short term savings pot like for vacation, decorating, furniture etc.

I'm sure there's things I'm missing since I'm not in the UK that others could mention. It's a nice problem to have though, extra money to divvy up. ��

[Deleted User]

The advice I have heard is to have 6 months worth of outgoings saved in case of the worst. So I'd probably work out what that amount is, then put the remainder into the mortgage as an overpayment. Just what I'd do though!

bexster1975

Hello

Marcus ( an arm of Goldman-Sachs) offers 1.35% on savings which is easy access with no strings attached. I'd put anything beyond 10% in there for now.

Bexster