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£500pcm. Mortgage overpayment or savings.
jinkssick
Forumite 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.Mortgage: £200,000 (Sep 2021) Initial MF date: Sep 2031
Int Rate: 1.19% fixed until Nov 2026 (7.75% follow on rate?)
Cap+Int Repaid: £65100 (32%) £80,704 (40%) £82468 (40.48%)£89507 (43%) £91267 (44.7%)
Target MF date: Nov 2026 Current MF date: Dec 2029, Nov 2029, Apr 2029
Target Int Saving: £21,709 Current Int Saved: £12,350, £13,421, £16,991, £17,989, £18,699
Overpayments suspended and surplus cash currently being diverted to high interest savings.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.We are born naked, wet and hungry...Then things get worse.
.withdrawal, NOT withdrawel ..bear with me, NOT bare with me
.definitely, NOT definately ......separate, NOT seperate
should have, NOT should of .....guaranteed, NOT guarenteed0
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