Property News · August 31, 2011

Should we save or make mortgage overpayments?


Q My husband and I have an interest-only mortgage of £114,000 at 0.95% above base rate, so our payments have gone down quite a bit since rates went down. We have extra cash as a result of this – about £500 a month when we tighten our belts – but don’t know whether we should save this in a high interest account or make overpayments on the mortgage.Interest earned on savings is pretty low at the moment, and we can’t seem to figure out which would be better. Mortgage calculators don’t seem to balance the two, and I have searched everywhere on the net but can’t seem to find the answer. We have no other debt apart from the mortgage. CT Continue reading…

Source : theguardian.com
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