Chase Savings/MoneyBox S&S ISA/Mortgage Overpayment

58 Posts

Over the last year we have been overpaying our mortgage by £400 per month but unsure if this is wise based on current savings rates increasing.
Our mortgage is fixed at 2.4%. From what I've previously read and seen on Martin's show, we have been overpaying the mortgage as the rate was higher than the savings rates at the time.
Currently we both hold Chase Savings accounts that are due to go up to 3% along with Moneybox Stocks and Shares ISA accounts which so far are up 5.65%.
We had also opened Zopa accounts and created the various pots to do the ladder technique, first pot due to mature beginning of April on 3.26% but no large volume of money has been moved over yet.
Would we be better off putting our £400 into either our Chase Savings accounts, add to our Stock and Shares ISA or overpay our mortgage?
Thanks for any help provided.
Our mortgage is fixed at 2.4%. From what I've previously read and seen on Martin's show, we have been overpaying the mortgage as the rate was higher than the savings rates at the time.
Currently we both hold Chase Savings accounts that are due to go up to 3% along with Moneybox Stocks and Shares ISA accounts which so far are up 5.65%.
We had also opened Zopa accounts and created the various pots to do the ladder technique, first pot due to mature beginning of April on 3.26% but no large volume of money has been moved over yet.
Would we be better off putting our £400 into either our Chase Savings accounts, add to our Stock and Shares ISA or overpay our mortgage?
Thanks for any help provided.
0
Latest MSE News and Guides
Replies
.withdrawal, NOT withdrawel ..bear with me, NOT bare with me
.definitely, NOT definately ......separate, NOT seperate
should have, NOT should of .....guaranteed, NOT guarenteed
Obviously there is a degree of risk with investing, but if you are invested within your risk tolerance, globally diversified and in it for the long-term then investing is just an efficient use of capital to achieve investment growth and/or income for the investor.
To expand a bit and to give two extreme examples, investing in a handful of stocks/crypto for a holding period of a few months is akin to gambling. However investing in a passive world index equity fund for a holding period of 10 years+ is very much investing and you are practically 99% likely to have a positive return over that time frame.
I've seen some charts which show the probability of a positive return from investing at different time periods, that probability increases as the time period increases. I'm sure someone will be able to dig it out if needed.
Save £12k in 2021 - #027 £15,268 (76%)
.withdrawal, NOT withdrawel ..bear with me, NOT bare with me
.definitely, NOT definately ......separate, NOT seperate
should have, NOT should of .....guaranteed, NOT guarenteed
Could you expand more on this financial law you're referring to?
Globally diversified mainstream investment funds. Based on 200 years of historical statistics , over 15 years you can expect a range of results from 0% to over 100% growth. More likely to be somewhere between 50% and 100%.
So in fact being 100% in cash savings is more of a risk than being invested, over the long term.
For the more cautious types, being in a mixture of cash and investments, hedges your bets ( to use a gambling analogy)
Could you expand more on this financial law you're referring to?
There are various formulas. What's important, they include 'risk-free rate' and 'portfolio return' along with other factors describing uncertainty/risks.
.withdrawal, NOT withdrawel ..bear with me, NOT bare with me
.definitely, NOT definately ......separate, NOT seperate
should have, NOT should of .....guaranteed, NOT guarenteed