What makes the most sense to be putting ~£200 a month into?

cloud_dog

dayallnash said:

My partner and I got some pay rises recently which means we have ~£200 extra per month spare to play with. We have all of our normal bills covered already, and we have enough spare ‘pocket money’ each month to keep ourselves happy, so we don’t feel like we want to change our lives significantly in any way right now (I suppose some people would get some new furniture or start a project of some kind which ends up taking up the new income). 

We have a fairly new mortgage - it’s about 1 year old and due for remortgaging in the summer - and we’ve already done a lot of work on the house since moving in to increase its value, and there aren’t many major projects left, though we could still do more to improve value if we put our minds to it. 

There’s also some credit card debt that is slowly getting paid off each month, but we are already overpaying on those payments and it’s not like they’re killing us. It’s on track to all be paid off next year already. 

We are keen to get working on saving for our next home. We’d like to move in 4-5 years to our ‘forever home’, where we can start and bring up a family. However we’re not sure the best way to use this new income to help towards this savings goal. Should we start overpaying on the mortgage? Open a savings account (And what type?)? Pay off some debts? We are risk averse - not keen on investing in anything by ourselves, we don’t have the time to spend on it - but we’d open an account that is inherently based on investment if the returns were basically guaranteed. Or should we just squirrel the money away in our current accounts in preparation for the dreaded remortgaging?

I appreciate that this is a very open ended question, but I’ll take any advice right now. This stuff doesn’t come super easily to me!

Firstly, apologies to MSE for blaspheming but, the Reddit UKPF Flowchart is a decent starter for the majority of situations (although it will never be perfect for every scenario).