Yep understood, although its a longer term investment stratagy , it would be nice to have the S&S and still have some monthly cash coming through .
Ill make a decision nearer to april
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Ill make a decision nearer to april
You can do more than chip away at it. I understand the comfort of having large savings, and using them to fully pay off your mortgage will take a significant chunk of the money; but, if I was in the position of having more than enough to pay my mortgage off, I would be doing that either immediately or over a 2-3 year period.
It will lower your savings but what major life changing events, and the likelihood of it happening, would mean you will be caught short financially when you have a guaranteed roof over your head?
Honestly (and I do mean this genuinely, not taking the mick) - you sound like someone that likes to see the "zeros in your bank balance" more than anything else and you have your priorities a little mixed up IMHO.
You say you have £30 left of your £20k ISA allowance this year so you can save a significant amount per year as that doesnt include money you are putting into your CHASE Savings or Premium Bonds.
Are you able to share your mortgage interest rate and term left?
Last edited:
The reason i am holding on to savings as said at the moment, is that my role may not be available in a year or two, im hoping it is, but it could very well not be, which means i would need to look around,
Im hoping it is, but i would like emergency funds available and not stick it ALL on the mortgage for the moment
My current mortgage rate with barclays is 3.95% , around 2.8 years in to a 5 year fix.
My current mortgage term sits at 22. something years
as said my stratagy at the moment is to overpay around £8-9k or even 10k a year to bring the term down to around 10-11 years to pay off.
As and when i know whats happening about my role, if i feel it will still be available after a year and a half 2 years, ill make judgement then.
I also, may want to move property, not fully decided on this yet as my place is kind of smaller than i would have hoped for and now need to decide what to do
Last edited:
All understandable but do you need >£100k in "emergency savings"? (I may have this figure wrong so apologies if I do)
People are more than happy with 12 months of expenditure in easy access savings, most go with 6 months.
Its in a mixture of premium bonds, Cash ISA and savings
Generally yes, as it makes me feel comfortable. I can also use it if required for a purchase, or to pay off something, or to buy stuff , or to survive in case of an emergency. Also, if i want to maybe spend it on a kitchen, or maybe a deposit for a different property its also handy
None of my business what people do with their money, just trying to offer suggestions....
If using for a deposit on a different property - unless you are talking about a 2nd house, any money ploughed into your current house could be released up on its sale to use as the deposit for the new house BTW.
As I mentioned before - it sounds like you are a "like seeing all the zeroes on your balance" kind of guy (which can be appealing). No problem with it, it just might just be better used. For me, if I had enough to pay clear my mortgage and have £50k left in savings, I would be happy as **** (not saying you would have that much left)
Last edited:
I used to hold a lot of cash for similar reasons. Once I calculated what the opportunity cost had been as opposed to having it in an index tracker, it was pretty eye opening. Over the few year period I looked at, that £100k would have been £170k. I probably still hold a bit too much, but far less than I used to. How much is feeling comfortable worth?