I have a new job with more money and am weighing up options, given the poor interest rates on savings
Q I am in the fortunate position of having managed to save a reasonable amount of money this summer and I have also got a new job with a decent pay rise. Would it be more sensible, given where interest rates are, for me to use my savings to overpay on my mortgage? I am two years into a five-year mortgage deal fixed at 2.1% and each year I am allowed to pay off 10% of the 27-year-term mortgage.
I live in a two-bed flat in London without a garden, so currently it is likely that the flat’s value may have dipped slightly, but I envisage being here for probably the next five years.
PJ