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Drawing down on overpayments
andyrh68
Posts: 1 Newbie
I currently have a Nationwide fixed rate (5.5%) Mortgage with an outstanding balance of £76000, with just over two years to go. Currently I am permitted to overpay by £500 per month without incurring any charges. Would I be better off overpaying this amount per month, then drawing down, as and when I might need the money, or is my money better off in a savings account?
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Comments
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Hi, you could consider using up your mini cash ISA allowance provided it generates a return equal to 5.5% or more then pay the surplus off your mortgage.I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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