Savings what to do with it

WelshGlyndwr

My partner and i have 85k in various bonds and isas. We also have 139k remaining on the mortgage. What should we do? Jointly we earn £68k. We have no kids

wmb194

WelshGlyndwr said:

My partner and i have 85k in various bonds and isas. We also have 139k remaining on the mortgage. What should we do? Jointly we earn £68k. We have no kids

What's the interest rate on the mortgage?

WelshGlyndwr

2.34% it ends the mortg next Aug 24

r6mile

My suggestion would be to keep some savings aside in an easy access account, and put the rest (perhaps half) into 12-month ISAs, perhaps using both of your allowances. 

These accounts will then mature this time next year, and you’d use them to pay down your mortgage after your fix expires. That way you’ll have to borrow significantly less when you come to renew your mortgage - as interest rates are likely to be significantly higher than the 2.34% you’re currently paying.

WelshGlyndwr

r6mile said:

My suggestion would be to keep some savings aside in an easy access account, and put the rest (perhaps half) into 12-month ISAs, perhaps using both of your allowances. 

These accounts will then mature this time next year, and you’d use them to pay down your mortgage after your fix expires. That way you’ll have to borrow significantly less when you come to renew your mortgage - as interest rates are likely to be significantly higher than the 2.34% you’re currently paying.

Would you use the entire 80k to pay off tge mortgage next year? and at what stage of tge renewal would you pay it off?

BikingBud

WelshGlyndwr said:

My partner and i have 85k in various bonds and isas. We also have 139k remaining on the mortgage. What should we do? Jointly we earn £68k. We have no kids

Blow it all in Vegas, put it all on red?

How can you expect anyone on here to provide an answer?

Given the very limited information in your post we have no idea about any of your priorities or personal values.

Is it important to be mortgage free or more important to give it to the cat's home?

Why did you start saving? Just to have some cash? To give you options? Is it part of an early retirement plan?

Just go and buy an Aston Martin?

r6mile

WelshGlyndwr said:

r6mile said:

My suggestion would be to keep some savings aside in an easy access account, and put the rest (perhaps half) into 12-month ISAs, perhaps using both of your allowances. 

These accounts will then mature this time next year, and you’d use them to pay down your mortgage after your fix expires. That way you’ll have to borrow significantly less when you come to renew your mortgage - as interest rates are likely to be significantly higher than the 2.34% you’re currently paying.

Would you use the entire 80k to pay off tge mortgage next year? and at what stage of tge renewal would you pay it off?

As others have said it depends on priorities. But if you don’t have any other savings, then using them all for the mortgage feels very risky as you’d have no cushion. Hence my suggestion to use a good chunk to pay into the mortgage once your fix ends in August next year.

enthusiasticsaver

Given mortgage rate increases I would be tempted to make a large overpayment once the fix finishes assuming your mortgage rate increases. At the moment your mortgage is a fairly good rate so you can easily earn over 2.34% on your savings. 

WelshGlyndwr

r6mile said:

WelshGlyndwr said:

r6mile said:

My suggestion would be to keep some savings aside in an easy access account, and put the rest (perhaps half) into 12-month ISAs, perhaps using both of your allowances. 

These accounts will then mature this time next year, and you’d use them to pay down your mortgage after your fix expires. That way you’ll have to borrow significantly less when you come to renew your mortgage - as interest rates are likely to be significantly higher than the 2.34% you’re currently paying.

Would you use the entire 80k to pay off tge mortgage next year? and at what stage of tge renewal would you pay it off?

As others have said it depends on priorities. But if you don’t have any other savings, then using them all for the mortgage feels very risky as you’d have no cushion. Hence my suggestion to use a good chunk to pay into the mortgage once your fix ends in August next year.

better to clear mortgage than have savinga

WelshGlyndwr

BikingBud said:

WelshGlyndwr said:

My partner and i have 85k in various bonds and isas. We also have 139k remaining on the mortgage. What should we do? Jointly we earn £68k. We have no kids

Blow it all in Vegas, put it all on red?

How can you expect anyone on here to provide an answer?

Given the very limited information in your post we have no idea about any of your priorities or personal values.

Is it important to be mortgage free or more important to give it to the cat's home?

Why did you start saving? Just to have some cash? To give you options? Is it part of an early retirement plan?

Just go and buy an Aston Martin?

i was wondering if it was a good amount of savings compared to other people. should i be saving more?

BikingBud

WelshGlyndwr said:

My partner and i have 85k in various bonds and isas. We also have 139k remaining on the mortgage. What should we do? Jointly we earn £68k. We have no kids
BikingBud said:

Blow it all in Vegas, put it all on red?

How can you expect anyone on here to provide an answer?

Given the very limited information in your post we have no idea about any of your priorities or personal values.

Is it important to be mortgage free or more important to give it to the cat's home?

Why did you start saving? Just to have some cash? To give you options? Is it part of an early retirement plan?

Just go and buy an Aston Martin?


WelshGlyndwr said:

i was wondering if it was a good amount of savings compared to other people. should i be saving more?

It really does not matter what others do, some will have millions stashed away, others will have debts of many tens of thousands of pounds.

 If you are saving, to what end? 

Do  you have a goal?

If you have no clear idea about what you want to achieve then why are you saving?