# Premium bonds



## Raife (Jul 14, 2009)

I have a substantial amount of premium bonds.....should I cash in and pay it off my mortgage? It will reduce my mortgage by one fifth.


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## Neil_S (Oct 26, 2005)

The long term interest savings should safely outweigh the percentage average return on premium bonds.

I'd say yes.


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## Carr20VT (Jan 11, 2006)

Raife said:


> I have a substantial amount of premium bonds.....should I cash in and pay it off my mortgage? It will reduce my mortgage by one fifth.


How long have you had them? Have you ever won anything?


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## Raife (Jul 14, 2009)

Won £500 once and Used to get a £50 or £100 about every other month. The last year or so they've dropped the prizes, amounts and numbers.... got £25 this month but seen nothing for three months!

It just the "chance" that I might get "the big one"


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## Bristle Hound (May 31, 2009)

This might help your decision

http://www.moneysavingexpert.com/savings/premium-bonds

:thumb:


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## jazsarl (Aug 19, 2009)

Hi if I may

 In order to work out accuratelly you need find out how much return you have made from you bonds ie if you had £20,000 and you win say £1000 over 5 years, thats less than 1 percent return per year. bear with me, the second part is that it depends on what type of mortgage you have? if you current fixed rate is expired and have a tracker the chances your mortgage rate is low prob about 3%. so if at the moment you make more from earning from the bonds. keep them, if not pay some of the mortgage, check your mortgage company if they have penalties for paying early also.

I am not a financial advisor, and this is not professional advice, im just mad


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## Raife (Jul 14, 2009)

Hey, thanks for ideas. I've cashed in!

My fixed mortgage is up this month!!! YAY!! 

Its going from 6.04% to 2.5%.... the bank are keen for me to take out a new "product" but at 2.5% im going to sit on that and watch the rates....

Im paying off the bond money, not enough return and nice to owe much less!!


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## freon warrior (May 31, 2006)

Paying off debt is always good.


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## Podder (Sep 15, 2009)

Good call - I did something similar and have saved loads of interest.


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## johninspain (Sep 30, 2009)

I also have a lot of premuim bonds, every year i cash them then buy new ones, I seam to win more, this year so far 1850 pounds, it seams the way forward !


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## Stumper (Apr 5, 2009)

Sounds like you've done the best thing in cashing them in.
There's no point in having savings sitting earning little interest while you're paying more interest on your debts!


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