Overpay max amount or keep money in premium bonds?
I’m very fortunate to be able to pay a lump sum into my mortgage this month so I could put in the full overpayment allowance amount before the year starts again in December. Currently, the funds are in Premium Bonds and I consider myself a person with above average luck in that regard! My mortgage rate is 3.04% fixed for 10 years about 5 years ago. I’m planning to pay off the mortgage completely next year using the remainder of my bonds (and swallow the 2% ERD). So is it worth paying the extra £6k now so I’ve used up my overpayment allowance for the year, or does it not really matter that much? I’m hesitating because with fewer bonds, I have a lesser chance of winning.
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