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Overpayments?
RoxieW
Posts: 3,016 Forumite
I'm all confused about overpaying.
We've got about £10K in savings and are saving about £500 a month. Should we keep saving in ISA's or overpay? We are allowed to overpay on our mortgage - and our rate is 6% - the same as we're getting on our ISA's.
So is there any benefit to overpaying over saving? Obv if our house value falls in value we'd be losing any 'equity' that we've paid off. Whereas if we keep saving in ISA's that money is readily available for a deposit on our next house.
I'm confused - is it all just swings and roundabouts?
We've got about £10K in savings and are saving about £500 a month. Should we keep saving in ISA's or overpay? We are allowed to overpay on our mortgage - and our rate is 6% - the same as we're getting on our ISA's.
So is there any benefit to overpaying over saving? Obv if our house value falls in value we'd be losing any 'equity' that we've paid off. Whereas if we keep saving in ISA's that money is readily available for a deposit on our next house.
I'm confused - is it all just swings and roundabouts?
MANAGED TO CLEAR A 3K OVERDRAFT IN ONE FRUGAL, SUPER CHARGED MONEY EARNING MONTH!:j
£10 a day challenge Aug £408.50, Sept £90
Weekly.
155/200
"It's not always rainbows and butterflies, It's compromise that moves us along."
£10 a day challenge Aug £408.50, Sept £90
Weekly.
155/200
"It's not always rainbows and butterflies, It's compromise that moves us along."
0
Comments
-
Are you nearing the end of a fixed mortgage period, where you would benefit from having more equity in your property to get a better fixed deal?
It's always good to have savings should you lose your job/become ill/have to get up work and need money to continue paying the mortgage.
If you're saving £500/month, then this is over the maximum ISA amount, so what interest rate will the remaining savings get?
You could save until you max out this year's ISA, and use the rest to overpay the mortgage each month.Should've = Should HAVE (not 'of')
Would've = Would HAVE (not 'of')
No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)0 -
Hi - thanks for the reply - we save into 2 ISA's - mine and hubbys - so we get about 6% on all our saving.
Mortgage wise we have a variable rate that goes up and down depending on the base rate. It's always been fair enough to us so we have no intention of moving for the time being.MANAGED TO CLEAR A 3K OVERDRAFT IN ONE FRUGAL, SUPER CHARGED MONEY EARNING MONTH!:j
£10 a day challenge Aug £408.50, Sept £90
Weekly.
155/200
"It's not always rainbows and butterflies, It's compromise that moves us along."0
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