Savings what to do with it

WelshGlyndwr
WelshGlyndwr Forumite Posts: 106
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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
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  • wmb194
    wmb194 Forumite Posts: 2,532
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    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
    WelshGlyndwr Forumite Posts: 106
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    2.34% it ends the mortg next Aug 24
  • r6mile
    r6mile Forumite Posts: 180
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    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
    WelshGlyndwr Forumite Posts: 106
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    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
    BikingBud Forumite Posts: 1,537
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    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?
    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.
  • r6mile
    r6mile Forumite Posts: 180
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    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
    enthusiasticsaver Forumite, Ambassador Posts: 14,706
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    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. 

    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.
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  • WelshGlyndwr
    WelshGlyndwr Forumite Posts: 106
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    r6mile 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
    WelshGlyndwr Forumite Posts: 106
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    BikingBud 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
    BikingBud Forumite Posts: 1,537
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    edited 23 July at 6:30PM
    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?
    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.
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