Jump to content
House Price Crash Forum
Sign in to follow this  
deadjune

Repay Or Save?

Recommended Posts

Hello chaps,

I am completely financially illiterate, I wonder,

is the rule of thumb if your repayment mortgage

has a rate of 1.49% and your savings account pays 3%,

is best to leave the cash in the Bank rather

repay a big chunk of the loan?????

Share this post


Link to post
Share on other sites

I'd say its not quite that simple.

Is the 3% gross or net?

Is it guaranteed indefinitely, or for a fixed term after which it will fall?

Is the mortgage rate fixed for a set term and set to rise at some point? (ignoring general rate rises)

Might you have any need of the lump sum? Its much easier to get your hands on when its in cash rather than equity in your home.

Share this post


Link to post
Share on other sites

Hello chaps,

I am completely financially illiterate, I wonder,

is the rule of thumb if your repayment mortgage

has a rate of 1.49% and your savings account pays 3%,

is best to leave the cash in the Bank rather

repay a big chunk of the loan?????

Pay off the mortgage you are paying 1.49% for the life of the mortgage the quicker you get the amount down the better IMO.

Also don't forget that you pay tax on savings (unless they are in an ISA) so that 3% doesn't look so great in that scenario, especially if you are a higher rate tax payer.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.