When we got our mortgage 2 years ago, rates were about 3-3.5% so we've been favouring mortgage overpayments over savings. But now mortgage rates have fallen to well under 2%, less than you can get on even a boring cash ISA.
In this situation is there any good argument for continuing to make overpayments or should one put all spare cash into ISAs and savings accounts, and then make a big overpayment when/if things reverse? With the 15k ISA limit and a spouse, maxing out ISAs is now a challenge and the "never take money out of an ISA" adage seems a bit less relevant.
I quite enjoyed seeing the mortgage tumble in size but doing it just for pride seems a bit daft.
In this situation is there any good argument for continuing to make overpayments or should one put all spare cash into ISAs and savings accounts, and then make a big overpayment when/if things reverse? With the 15k ISA limit and a spouse, maxing out ISAs is now a challenge and the "never take money out of an ISA" adage seems a bit less relevant.
I quite enjoyed seeing the mortgage tumble in size but doing it just for pride seems a bit daft.
Comment