Paying mortgage vs liquidity of saving

Hello, after some advice please.
Large mortgage, tracker rate (base+0.64=0.74%) but due to go 1.49%(ish) in September on fix (probably).
No other debts.
Savings (0.5-0.61%).

I'm looking at paying off some of mortgage but wondering how much savings to hold back as emergency fund? (Outgoings in a normal month £3000, Covid times £2600, If we lost our jobs/frugal £2300).

I'm overly worried about losing jobs ect so put off paying any of mortgage off but looking for clever people like yourselves to give indication of whats a fair emergency fund.


  • We have similar figures to you re minimum expenses and have a year’s worth of emergency fund savings. We have jobs with a fair degree of uncertainty so needed a decent cushion to feel comfortable before committing to OP to the mortgage. 
    I think a lot of it is personal with a whole range of individual factors incl location, job type, industry etc. 
    Hope this helps! 
    #26 MFW 2023 challenge Small OPs are better than no OPs! Feb 2018 £231,000 / Apr 2042 Current £133,700 / March 2036
  • I think it depends on your job stability / job market. My husband and I are aiming for 3 months of emergency funds and then will start OPing the mortgage. But we both have very stable jobs (neither affected by COVID) and large job market at this time. If our jobs were in riskier sectors I would definitely want more like 6 months to a year.
    Current mortgage (1 Jun 2022): £289,501 - originally £351,999 got to love London sized mortgages!
    OP Goal 2022 = 3.75% in OPs: £6,975 / £13,200
    Emergency Fund Target: 3 months saved ✅
  • longway2go
    longway2go Posts: 1,006
    First Post Name Dropper First Anniversary
    We are aiming for 6 months but it depends on circumstances. 
    Mortgage Aug 2019 161,000 :eek::eek::eek:Nov 2019 156,500:T Jan 2020 153,122:T, Apr 2020 149,500, Apr2021 139, 675, Oct 2021 136,823, Dec 2021 136,120🙂EF 0/12,000 (0%)😕 (5062.44 was ERC), Jan 2023 128,650. Our Mortgage is never going to be as high as it is today. :jOnwards and downwards to a better life for our family. :jJust keep swimming
  • Michael_Bear
    Michael_Bear Posts: 57
    First Anniversary First Post Name Dropper Combo Breaker
    edited 24 January 2021 at 12:04PM
    Thanks for comments. We have relatively unstable jobs so I'm thinking £2300 (frugal spend not our actual outgoings)x 12 months = £27600 required in accessible savings seems to conservative but appropriate amount.

    I also believe its appropriate to use frugal amount as wed receive JSA/critical illness cover so income wouldnt be 0.
    Thanks again
  • Hi we also hold 12 months as EF because my job is always precarious and as we have DD and DS relocation for a new role would be very challenging.  Also I am a bit of a pessimist so tend to plan for the worst. We had a patch about 10 years ago when we ran our EF down (to buy a house in a nicer area). (Previously to that we were in a terrace living next door to an alcoholic who had accidentally set their house on fire and there was flying tipping in our back lane with an associated rat problem). I don’t regret making the move to relocate but we were really up against it money wise for a couple of years and it’s not an experience I ever wish to repeat. CM
  • I also have 12 months of budget for my emergency fund. My job is relatively secure (though with COVID who knows) but I work in a niche area so I know it would take time to find the right post.
    Mortgage £75,300 (December 2016) Mortgage Free Date December 2051

    Mortgage £17,350 (December 2023) Mortgage Free Date 1st March 2024
  • caeler
    caeler Posts: 2,605
    Mortgage-free Glee! Photogenic Name Dropper First Post
    3-6 months worth of bills and spends is what I like to maintain. 
  • Thanks again for the replies. All input appreciated with my solution being 12xfrugal monthly spend in accessible cash ISA. Great to hear other people's thoughts.
    Thanks again all
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