What would you do?
I currently have £160k mortgage that I am trying to pay off.
I've been lucky that I am in a fixed rate of 0.99% over 5 years so my monthly mortgage payment is approx £890.
I have been overpaying £500 a month as well as this is making it drop quite quickly.
I've also been saving (approx £500 a month) and I am currently at £16k, this isn't for anything in particular. More an emergency if I were to be out of a job etc. My intial plan was to save up £20k.
But I'm thinking now I should maybe pay more off the mortgage now. I can pay upto 10% overpayments without any charges.
So my question is: do you think I should either pay more in overpayments? carry on saving (rubbish interest rate)? or save and pay a lump sum off mortgage at the end of each year?
I have a good pension with my work, so I don't need to add anything extra to that.
I'm just not sure what to do. What would you do if you were in my shoes?
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