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£500pcm. Mortgage overpayment or savings.
jinkssick
Posts: 1,323 Forumite
Hi, just wanted to get your thoughts if I should save £500 per month on a 6.05% 1 year fix (no tax) or same amount into a mortgage 4.58% (170k remaining)?
Thank you.
Thank you.
Save saynoto0870.com in your favorites, and stop giving companies more £££ dialling 0870 numbers when you can dial freephones or cheaper alternatives
call your credit card company, tell them that you want to leave, 99% of the time theyll lower your APR%
Remember when that Bank Manager or Salesperson smiles at you, all he sees is £ notes. Dont forget the motto, "the wider their grin, the more debt your in"
call your credit card company, tell them that you want to leave, 99% of the time theyll lower your APR%
Remember when that Bank Manager or Salesperson smiles at you, all he sees is £ notes. Dont forget the motto, "the wider their grin, the more debt your in"
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Comments
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Try this: http://locostfireblade.co.uk/spreadsheet/Index.html
You can investigate and understand you own best options.Your life is too short to be unhappy 5 days a week in exchange for 2 days of freedom!0 -
You can't save monthly on a fixed rate though, can you? It's normally a lump sum locked away till the maturity date.jinkssick said:Hi, just wanted to get your thoughts if I should save £500 per month on a 6.05% 1 year fix (no tax) or same amount into a mortgage 4.58% (170k remaining)?
Thank you.3 -
Sorry, my oversight, you are dead on the money.kwangomango said:
You can't save monthly on a fixed rate though, can you? It's normally a lump sum locked away till the maturity date.jinkssick said:Hi, just wanted to get your thoughts if I should save £500 per month on a 6.05% 1 year fix (no tax) or same amount into a mortgage 4.58% (170k remaining)?
Thank you.Save saynoto0870.com in your favorites, and stop giving companies more £££ dialling 0870 numbers when you can dial freephones or cheaper alternatives
call your credit card company, tell them that you want to leave, 99% of the time theyll lower your APR%
Remember when that Bank Manager or Salesperson smiles at you, all he sees is £ notes. Dont forget the motto, "the wider their grin, the more debt your in"0 -
But you can use regular savers instead.jinkssick said:
Sorry, my oversight, you are dead on the money.kwangomango said:
You can't save monthly on a fixed rate though, can you? It's normally a lump sum locked away till the maturity date.jinkssick said:Hi, just wanted to get your thoughts if I should save £500 per month on a 6.05% 1 year fix (no tax) or same amount into a mortgage 4.58% (170k remaining)?
Thank you.Ex Sg27 (long forgotten log in details)Massive thank you to those on the long since defunct Matched Betting board.3 -
You can't, the only accounts you can top up are the easy access ones, but they offer less than their mortgage.
You could in theory open multiple accounts with 6.05% Atom:
https://www.atombank.co.uk/fixed-saver/one-year-annual/#:~:text=You can hold as many,same day the following week.
Although not sure if it's not too much hassle for little gain.1 -
And they pay upto 7%. The OP may need a couple of RS accounts for £500 per month due to funding limits.Sg28 said:
But you can use regular savers instead.jinkssick said:
Sorry, my oversight, you are dead on the money.kwangomango said:
You can't save monthly on a fixed rate though, can you? It's normally a lump sum locked away till the maturity date.jinkssick said:Hi, just wanted to get your thoughts if I should save £500 per month on a 6.05% 1 year fix (no tax) or same amount into a mortgage 4.58% (170k remaining)?
Thank you.'Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it' - Albert Einstein.1 -
Regular savers pretty much fit the bill perfectly.Doctor_Who said:
And they pay upto 7%. The OP may need a couple of RS accounts for £500 per month due to funding limits.Sg28 said:
But you can use regular savers instead.jinkssick said:
Sorry, my oversight, you are dead on the money.kwangomango said:
You can't save monthly on a fixed rate though, can you? It's normally a lump sum locked away till the maturity date.jinkssick said:Hi, just wanted to get your thoughts if I should save £500 per month on a 6.05% 1 year fix (no tax) or same amount into a mortgage 4.58% (170k remaining)?
Thank you.
As you say, they'll need more than one - maybe £300 into first direct @7% and £200 into natwest @6%.
https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/
Match made in heaven with the OP's circumstances.
I don't think you need a fancy spreadsheet to work out that 6% > 4.5%BikingBud said:Try this: http://locostfireblade.co.uk/spreadsheet/Index.html
You can investigate and understand you own best options.Know what you don't4 -
Regular savings accounts. Do they allow multiple accounts for same person? I guess if not I could do £250 pm Skipton BS and open one for my wife £250 pm. I think this work well. Thanks all.Save saynoto0870.com in your favorites, and stop giving companies more £££ dialling 0870 numbers when you can dial freephones or cheaper alternatives
call your credit card company, tell them that you want to leave, 99% of the time theyll lower your APR%
Remember when that Bank Manager or Salesperson smiles at you, all he sees is £ notes. Dont forget the motto, "the wider their grin, the more debt your in"0 -
I'm not 100% sure since I don't need to use them, but I suspect not with the same provider. Nothing to stop you opening a RS with several different providers, or, as you say, you and your wife each open one with the same provider.jinkssick said:Regular savings accounts. Do they allow multiple accounts for same person? I guess if not I could do £250 pm Skipton BS and open one for my wife £250 pm. I think this work well. Thanks all.'Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it' - Albert Einstein.0 -
For these rates don't forget to take possible tax on the interest into account.jinkssick said:Hi, just wanted to get your thoughts if I should save £500 per month on a 6.05% 1 year fix (no tax) or same amount into a mortgage 4.58% (170k remaining)?
Not a problem if you don't have other savings.0
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