payoff some of my mortage or upgrade my car???

[wijcc]

isn't there a penalty for over payment? I'm sure you can't just walk into the building society and slap down a cheque for £5000. I think on my mortgage you can only overpay by £500 per month. I think the best time is when your mortgage is up for renewal...ie after 2/3 years

on my mortage, every january you can pay off upto 10% of your mortage without a penalty but only in january

 

[dantheman213]

Get an offset mortgage, then you can save the money, whilst it will earn you no interest, you'll be able to offset the amount in savings against your mortgage, and hence pay less interest on your overall mortgage - Your mortgage interest rate is probably higher than what you can get on any savings.

Really depends on how much you'll save in the long run.

 

[platypus]

on my mortage, every january you can pay off upto 10% of your mortage without a penalty but only in january

Just after the big spending month of Christmas. Devious buggers.

 

[welshboy]

Just after the big spending month of Christmas. Devious buggers.

think thats why they do it, because no one will take up the offer lol
call it a january sale hehe

i would put it into your mortgage, especially with whats been going on lately

 

[Dr House]

I had the same choice as you recently, pay off 1/3 of my mortgage or get a new car.

Im please to say I made the right choice

 

[spoonz]

PAH!

screw the mortgage, with inflation that 5k will be nothing if you staying there for 15+ years.

Spend spend spend

 

[GarethDW]

I had the same choice as you recently, pay off 1/3 of my mortgage or get a new car.

Im please to say I made the right choice

So what make & model did you get...?

J/K..... it's boring but either paying off the mortgage or investing it in ISAs is a wiser choice than getting some new wheels.

 

[mysticsniper]

You can get a much better return on your money, by putting it in an high interest account than using it on your mortgage. For example my interest on my mortgage is 4.5%. I can take the £5k and put it into a back and get a min of 6% easy

Is it buring a hole in your pocket then. lol

 

[Pumpkinstew]

If your mortgage is 18 months old then you probably just got in before all of the interest rate rises. If you got a fixed rate mortgage then I would put it in a high interest savings account/ISA and then possibly use the money when your fixed term is about to end or when you move to a bigger place.
Even if you have a tracker I would place the money in savings as you then have it to cover any crisis that might come along (like your car going bang)

 

[Ev0]

Personally wouldn't bother paying off just 5k, if the saving is 10k over say 20 years then that's just over £40 a month in your pocket extra.

Yes 10k is a lot, but over such a period are you really going to notice it or will you just fritter that £40 away?

I'll be in the same boat soon, it's either new car or 10% off the mortgage, I know what I'm choosing

 

[sniffy]

I think youve answered your own question there

 

[Bes]

i'm only 1.5 years into my mortage still got another 23.5 years to go. Getting very envyious of other people getting nicer cars etc.
But I will wait till after the new year when my cars MOT comes up on the 7th. I'm 95% leaning towards paying off the mortage hence why i have been saving that money. But as they say you only live once???

Its exactly this keeping up with the Joneses nonsense that has got people into the mess they are now. People who make financial decisions like that are the reason we have (probably) the highest level of consumer debt per capita in the world and why millions of people are living on the cusp of bankruptcy.

Go and read some of the bankruptcy posts over on MSE and see if you still want to blow £5000 on a rusty old car.

You would be utterly mad and stupid to blow £5,000 on a car with a huge mortgage hanging over your head. Especially in the current financial climate.

Either put it in high interest savings, or pay off your mortgage (People here should not be advising you on which of these to do as they do not know your tax/ interest situation).

 

[Dr Jack]

I'd leave the £5k in savings, tbh. It's worth having some pennies in a rainy day fund.

 

[Gimpymoo]

Buy a PC which can play Crysis

 

[JodieO]

Mortgage definitely.

 

[Avalon]

Depends, with the overpayment system I have on my borrowings I can overpay it and then re borrow the overpayments if required at some point in the future with no fee's and 7 days notice. If the OP has something similar then it'd be potentially worth doing. As for investing it in a bank and getting 6% remember you need to consider the tax deductions.

 

[!bluetonic!]

Mods, can we move this thread to the motors section to get a different view on things?

 

[melbourne720]

I'd leave the £5k in savings, tbh. It's worth having some pennies in a rainy day fund.

Exactly

Unless you have a really high % on your mortgage, you'll be able to get a better rate in a savings account.

Pay of high interest debts>ISA>High Interest Account>Mortgage>Regular Savings Account>Student Loan>Car>Put it all on black

 

[Jambo]

What a bunch of boring *******.

If you are meeting your mortgage payments comfortably then I don't see why you can't spend the £5k. You might not see the day 25 years later when your mortgage is paid off.

Live a little. T'is only money.

 

[Dave M]

get an offset mortgage and keep it in savings? You never know, rainy day and all that.

If thats not feasible put it in the highest rate 15 or 30 day access account you can find, again just incase. Put the next 5k you save into the mortgage, keep this 5k for disasters.