# bit of savings advice needed



## johnsastra16v (Oct 7, 2007)

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## Bratwurst (Jan 23, 2009)

I keep myself credit-free, except for the mortgage, and keep at least 10k in a joint 'house account' for any unexpected madness that may happen.

Don't like being tied-down to owing people money.

If i were you, I'd pay off the loan, keep a fair bit by for emergencies and with the money you save each month from loan payments, get that pumped into the mortgage.


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## alipman (May 10, 2007)

I agree.
Get yourself with a buffer just in case you need the money for unexpected job losses, etc.

Start getting rid of debt but dont leave yourself vulnerable.
I moved house nearly 2 years ago and have been overpaying by £500 per month (max amount without incurring charges) and its taking months at a time off the debt.

should we pay 10% towards our house? we can pay upto 105 per annum without charge.
im not 100% convinced we should do this, but wife thinks we should.

Whats the 105? is that 5% above your monthly mortgage payment?

HTH


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## lofty (Jun 19, 2007)

It it were me I would pay off the loan (your 360x24 months wont pay it of in 2 years),Pay 10K off the mortgage,Put both your max into an ISA= £7200.00(you will get about 3.5%)keep the rest for a rainy day,and use the money you are saving on the loan to overpay your mortgage.


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## kh904 (Dec 18, 2006)

i argee with the above replies.

Always keep a buffer in cash just in case.

Will there be any net benefits (in terms money) if you pay off the loan? What charges if any would be incurred if you pay early?

If there's no benefit don't bother paying it off before you need to, keep the cash in the account earning some interest (even if it's very little).

I would also suggest maxing your ISA if you have one, if not do open one!

Don't bother changing your euros if you're going to need them soon.

The rest pay extra towards your mortgage (within the allowance without penalty).

If you're buying lots of stuff for the home (especially from the same place) see what deals you can get paying cash (it really does work) t that time - especially if going to an independant store.
You'll get a better discount!

Just my suggestions.


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## johnsastra16v (Oct 7, 2007)

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## Stumper (Apr 5, 2009)

johnsastra16v said:


> if we were to sat put 10% of our mortgage down, would the repayments per month go down much??
> or would we be talkin something under £100 saving?
> as in my opnion, £14k of ours might be better off somewhere else to see better benefits??


I may be wrong here but I don't think the mortgage payments will go down, you will just pay off the mortgage earlier.
The only way they would go down is if you re-arranged the mortgage ove the same time period but with a lower value mortgage.

The £14k would probably be better off paid off the mortgage as the interest you will be paying on the mortgage will be higher than the interest you will gain by investing the money therefore, long term you will be better off!


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## johnsastra16v (Oct 7, 2007)

cheers graeme

think we need to go and speak with our mortgage advisor to see what our options are on that front.

thanks for the advice and opinions chaps


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## PaulN (Jan 17, 2008)

Im sure im not the only person thinking Blow it! 

In this present climate I would do as other said, pay off loan, maybe £10k toward mortgage but i would avoid an ISA, seen a few people get burnt with them.

Maybe put a nice chuck towards taking your house to the next level, a few upgrades which will make life even better.

Anyway how the hell did you get so much cash??? 

Cheers

PaulN


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## bjarvis2785 (Oct 4, 2008)

if you talk to most IFA's they will tell you to pay off your debt - this is because the interest on the debt will be more than the interest earned on any savings.

I would personally start off getting yourself an ISA.
Maybe premium bonds - no interest earned but the money is safe and you do have a chance of winning money back in the monthly draws (albeit a slim chance of winning the £1m)

i would put as much back in to the mortgage as you can comfortably afford - you won't regret it when you are mortgage free X amount of years earlier than original planned!


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## johnsastra16v (Oct 7, 2007)

as said above, was from our wedding

we have already spent around £20k refurbing our newly bought house. so on the house side of things were ok.

ive thought about premium bonds, but unsure of if or how much to put in. i have just £100 so far from when i was a kid in premium bonds lol
so the money is totally safe there?? whats the most you can put in?

well i think we'll deffo be sorting our debts out first.

then i guess we will try and put sum against the mortgage. hopefully by the time im 50 lol it'll be paid off and i can get my ferrari lol
actually, id probably have kids to have to fund thru uni!! lol


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## lofty (Jun 19, 2007)

Cash ISA's are totally safe up to the FSA's £50k limit.It's the same as having your money in an ordinary bank or building society account,only the tax man doesn't get a chunk of your interest.Stocks and shares ISA's can go up and down with the stock market.Probably a good time to invest in the later if its long term.


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## kh904 (Dec 18, 2006)

PaulN said:


> Im sure im not the only person thinking Blow it!
> 
> In this present climate I would do as other said, pay off loan, maybe £10k toward mortgage but i would avoid an ISA, seen a few people get burnt with them.
> 
> ...


I mean a cash ISA, how would someone can get burnt?


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## bilt-hamber kid (Dec 4, 2007)

As a rule of thumb, don't forget Protection John. I know its not sexy and no one likes buying it but if you're recently married (and possibly want to start a family) then insurance is going to be vital for the next 10 years or so. I'd consider putting some money aside into a feeder account and using that to simply fund insurance so that you can forget about it for a while and remain protected. Also, chuck some into an emergency fund that will provide easy and unfettered access in case you need a few month's income pronto.

With regards to paying off the mortgage, that would depend on your own position of course, away from what you've mentioned. In principle, it makes sense hacking at that, but when rates are on the deck? Consider your options if you think you can capitalise elsewhere in the short term but be ready to strike when BLR rises. An ISA is always a good idea (don't forget, the savings limit goes up soon). I hear what people say about getting burned with ISAs, but in some ways, thats like saying 'Huh, pensions are crap'. They're not of course, only some are and it depends how you choose and manage them. After all, not all red cars are crap. 

If you want to invest in equities, consider an ETF - cheap as chips and as ever, take suitable and qualified advice. An equity ISA of course, still gets pinged with Dividend Tax, deducted at source.
__________________


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## eddie bullit (Nov 23, 2007)

First and foremost clear your loan, as you've mentioned. Pay off as much as you can of your mortgage without charges. Place the rest in tax free savings. If you're a saver then come next year and you can pay some more of the mortgage without charges then do it! Biggest debt you'll ever have so clear asap imo. great feeling when you have :wave:


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## Bero (Mar 9, 2008)

Yep, if there are no large penalties pay off your loan 1st.

If your mortgage is higher than about 3% pay some of it off too. Keep some as a rainy day fund but put it in a cash ISA to maximise returns.


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