Muddy Waters please advise

lambosx150

Hi to you all,

Thanks for the time taken to read this post all sensible advice gladly accepted.

Would love to be free of my mortgage as soon as possible and within a sensible time scale.

Currently have a mortgage with the Great Northern Rock a 2 year fixed rate at 5.12% for £100 000 interest only and finishes Oct 2008
Payments set at £425

Increased payments to £800 from the 1st April 2008 and balance stands at £97 000 currently.

No credit card

Savings plan set to mature in 8 years and estimated to return £12 000 at 4%

Do I continue to overpay or take up an ISA

Attempted to get an independent advisor to give advice but was more interested in selling policies that had very high commission.I do realise that they do have to make a living but it seemed like lawfull robbery.

All advice gladly accepted.

Many thanks

Lambosx150

Welshlassie

Any particular reason why you are on an interest only mortgage especially as you are overpaying. Are you saving the difference between IO and repayment anywhere??

I'm assuming you mean you increased your payments from April 07?

If you are able to get a savings account/ISA which has an interest rate of more than 5.12% (which is possible) then I'd suggest paying into this and lumping it off when you remortgage.

PasturesNew

Yes, an ISA that pays more than your mortgage rate will always be a winner.

Best rate today is a Barclays one at 6.5%. You have to go to a branch to get it, but if you are an existing online Barclays account holder, you can do it online http://www.moneysavingexpert.com/savings/best-cash-isa#best