This board has been created to share any money saving ideas, tips and hints. Please contribute your thoughts so everybody can economise on their budgets.. This is NOT a selling site.
I know not everyone is in a position to even think about this right now (so please don’t hate me for asking!)
What are people’s current stances on saving vs overpaying on a mortgage?
With interest rates on the up and the cost of living, compared to the big debt of a mortgage - I’d be interested to know how people are opting to manage it at the moment. I’ve always been so keen to pay down the mortgage whenever I can, but now I’m considering reducing that and saving more of it instead.
I think there are so many variables! I over pay a little and save a bit but I’ll still have many years left to work and my childcare bill is a chunk also.
Have you got an emergency fund of 6 months as if so that’s when I’d start overpaying
It's got to be what is right for you and your circumstances, but for me, I'd be paying extra on my mortgage, keeping a roof over the family is no.1 priority x
We've been overpaying since we came off our fixed deal a long time ago. We didn't change the payments and now have 2yrs left due to overpaying on a standing order. What we have now done is rounded our standing order up to a whole £700 even though our mortgage is no where near that figure and when rates have changed our payments have gone down only by a £1 or £2 but this has been due to the daily rate calculated on on our overpayment
We've also been putting away upto £250 into 2 separate High rate savings which we can access twice a year without losing.the high rates if we need it
I always say if you got any spare cash then always make overpayments on your mortgage, the quicker you can clear that debt the better you’ll be in the long run, and save a ton on extra interest. Even £50-100 a month can make a huge difference. My interest rates just gone up so I’m now paying a extra £80 a month sadly we’ve had low interest rates for so long we’ve been very lucky!
I wouldn't bother overpaying your mortgage, clear any other debts you have then either invest in stocks or rental property or something that will give you passive income to keep you steady. I was told by an FA this information. Overpaying isn't actually beneficial. As long as you're paid by retirement age, they will take the house if you have to go in a home anyway so paying as little off as possible is the way to go or even better use the extra cash you have now to just live your life
As long as you have enough savings to cover your outgoings for six months, then pay down your mortgage ( assuming no other debts of course). Interest rates on savings are very poor ATM and if that interest rate is lower than what you are paying out in interest in your mortgage, it makes better sense to pay off your mortgage. Simple rule of thumb - when interest rates are low, pay off your debts. When interest rates are high, save.