savings while having a current account mortgage

Desperate_Housewife_2-2

Hi savers!

I usually post on MFW and OS threads but I sometimes lurk on here and wondered if any of you guys could help?

I have a virginone account and trying to pay off the mortgage using various methods of overpaying (stoozing, done carpet bagging in past, os style tactics such as meal planning etc, mortgage piggin', mystery shopping etc) I have a 'real' mortgage balance of £29,500 at the mo but the balance on the account shows at around £12k as I have a stoozepot in there and savings for various budgets (dentist, hols, dog, professional yearly fees etc) so I'm saving on mortgage interest payments.

Now, the question I have to ask is are there any accounts that pay better than my mortgage interest rate of 6.6% out there? I considered using the kids to open a halifax account as theirs is 10% (tax free) save4it but they already have one so would have to get hubby to do it and current account with the savings account of 12% attached but it would mean having wages paid into it and that would affect the benefits of the current acount mortgage.

I have thought about remortgaging but I hope to have it paid off by the end of next year ish and I like the flexibility of the virginone account even though the rate is higher than most.

I am so near to the end of my mortgage now I can almost taste it!!! I have plans for when its paid off ie open up cash isas to start and up pension contributions, also save up enough to live on for a year so we can be more flexible with work.

Do any of you kind souls who are savvy about savings let me know if you can think of anything else I can do please?

Thanks in advance and sorry for the long post

Desperate

debbie42

It's hard to get any rates significantly higher, especially if you are a tax payer.
It might be worth looking at the regular savers list: I have a couple that pay between 7-8%, but they have capped contributions, and conditions attached.

A&L sometimes have reg saver incentives for new account openings: I did one for a 10% offer, and didn't need to switch current accounts.

What's the 12% Halifax you're referring to?

Desperate_Housewife_2-2

debbie42 wrote: »

It's hard to get any rates significantly higher, especially if you are a tax payer.
It might be worth looking at the regular savers list: I have a couple that pay between 7-8%, but they have capped contributions, and conditions attached.

A&L sometimes have reg saver incentives for new account openings: I did one for a 10% offer, and didn't need to switch current accounts.

What's the 12% Halifax you're referring to?

Hi there, its this one http://www.alliance-leicester.co.uk/savings/index.asp?page=prs3&ct=htmlmidleftsavingsDec07 but you need to open up a current account with them and have your wages paid in before they'll offer you this account. Possible, especially through quidco for £50 incentive. Yes, it is hard to find a higher interest paying account, maybe I'll just carry on with the virginone till its all paid off. Thanks for replying though

Primrose

There are a few One Year Bonds offering slightly higher than your mortgage interest rate of 6.6% but I think they're now getting few and far between and probably won't be around for much longer with another possible BOE interest rate reduction on the cards.

SalsaDanca

Desperate_Housewife wrote: »

Hi there, its this one http://www.alliance-leicester.co.uk/savings/index.asp?page=prs3&ct=htmlmidleftsavingsDec07 but you need to open up a current account with them and have your wages paid in before they'll offer you this account. Possible, especially through quidco for £50 incentive.

You don't have to have your salary paid into the A&L account. Just transfer £500 from your existing current account to the A&L current account every month. £250 will be paid into the regular savings account, leaving you £250 to spend/withdraw/transfer back.

The A&L current account also comes with an interest free overdraft for the first 12 months. You could transfer this interest free money to your Virgin One account, and use it to offset your mortgage!

Desperate_Housewife_2-2

thanks everyone for your help.

I have decided to take Salsadanca's advice and open an account with A&L and save the £250 pm at 12% which by my calculation works out at £170 instead of leaving it in the virginone which would give me £92. Also got £50 for going through quidco.

I reckon this is worth doing especially as the BoE look likely to drop the rates tomorrow...

many thanks Desperate Housewife