Mortgage or savings?

shazk85

I forgot I opened an ISA which is now maturing but torn between putting it back into a high rate saving / ISA account or to make over payments on my mortgage (I can afford monthly mortgage costs, have 27 years left to pay mortgage and I tied in at right time so only 1.78 interest being paid on mortgage and got til 2027 on that rate) so think it better to do savings account / ISA but not really sure?

Mark_d

With a mortgage rate so low, definitely don't make overpayments.  The key thing is that you want your wealth to grow faster than your mortgage.  I do this using instant access cash savings plus a S&S ISA but your choice will depend on the amounts of money involved and your attitude to risk.

shazk85

Mark_d said:

With a mortgage rate so low, definitely don't make overpayments.  The key thing is that you want your wealth to grow faster than your mortgage.  I do this using instant access cash savings plus a S&S ISA but your choice will depend on the amounts of money involved and your attitude to risk.

Thanks this is what I was thinking as well when realised how long mortgage rate is will start having looking at other ISA or savings account

Archerychick

Totally agree with Mark_d

i have a 1.49% rate on mine and am currently saving over payments into a range of different places earning decent interest and then when the rate ends Oct 25 the plan is to pay it off in full. That it unless mortgage rates are lower than savings rates of course but I’d be suprised!

shazk85

Archerychick said:

Totally agree with Mark_d

i have a 1.49% rate on mine and am currently saving over payments into a range of different places earning decent interest and then when the rate ends Oct 25 the plan is to pay it off in full. That it unless mortgage rates are lower than savings rates of course but I’d be suprised!

Thanks glad you doing same 

Albermarle

shazk85 said:

Archerychick said:

Totally agree with Mark_d

i have a 1.49% rate on mine and am currently saving over payments into a range of different places earning decent interest and then when the rate ends Oct 25 the plan is to pay it off in full. That it unless mortgage rates are lower than savings rates of course but I’d be suprised!

Thanks glad you doing same 

The only real reason not to this, is if your job is insecure and losing it could mean missing mortgage payments.