So now it's not worth overpaying the mortgage again!

[MarillionFan]

Did the opposite. When I moved in 2007 I had paid off my previous house and went for a much larger one, but as I had an offset decided to max out my mortgage to multiplier but keep the money in the offset.

As interest rates dropped ISAs were higher so kept maxing them out including taking out a massive bond paying 5% in the wife's name. Eventually they dropped to 0.98% for me on 425k. I moved all of the equity and subsequent savings on interest into investment property including that house build & the rest into ISA the rest into topping up pension. Income from the mortgage money which I have invested is just shy of 6%.

I have no reason to overpay or pay off my mortgage until interest rates reverse and it's no longer profitable.

If I was you and you're paying 2% is to stick the overpayments in Zopa versus an Isa (unless you want a share ISA) as even after tax you'll end up making money.

[d000hg]

Well, we managed to get the dizzying rate of 2% on the cash ISA whose special rate was expiring, and even that was only due to Santander offering a promotional rate for 1-2-3 customers.

I was feeling pressured to get money into ISAs before the April cut-off but now I don't think I'll bother. 3% on the 1-2-3 (taxable) savings account is better and has no penalties to take the money out. And as mentioned in another thread, I think I'm going to dabble in Zopa/ThinCats to the tune of a few grand... nothing much until I get to grips with how it works and how comfortable I feel with it.

The increased ISA levels spoil my fun really. Before, it was always a nice goal to fill both our cash ISAs each year as well as any other investment/mortgage overpayments. But £30k is more than we have to put away each year so the game is a bit meaningless now

[DaveB]

I'm still aiming to pay off the mortgage asap. On an offset with First Direct atm.

I could put the extra cash into an ISA but topping it out would be difficult now for two of us.

Two big divi's this year and next should see it paid off and the cash that free's up each month can be used for something else when interest rates are better and I dont have to worry about paying it if I end up benched for any length of time.

[scooterscot]

Was on a residential mortgage until I moved out of UK. Santander must be spitting, they agree to convert to a let mortgage for a fixed fee some years age. 0.49% above base rate for a BTL. The yield is almost 7%.

[d000hg]

Was on a residential mortgage until I moved out of UK. Santander must be spitting, they agree to convert to a let mortgage for a fixed fee some years age. 0.49% above base rate for a BTL. The yield is almost 7%.

We have almost exactly the same situation. The first house we bought after getting married (for £63k!) we got a +.7% deal I think, and they let us keep it when we changed to BTL as the interest rate was 3%-ish at the time.

[lukemg]

Paying off the mortgage probably works well for some people but I don't care if I never pay it off. (got an offset so can take edge off without commitment)
You have to consider this against a complete picture of your finances.
I am always shocked to see people desperately paying off the mortgage only to find they have to do equity release at terrible terms later !!!
OR they end up scoffing up the entire IHT allowance and more with the house.
In terms of return, I can get 6% in dividends from SSE and an easy 4% in my sleep from a range of big non-scary shares. Anyone saving into a cash ISA or any basic account who doesn't need instant access to the cash is losing huge amounts of return over the space of a few years, seems madness to me but I do have an interest in this area.
SO - I would recommend everyone look at some equity investment for longer term stash (5 yrs min) (vanguard lifestrategy 100 would suit virtually everyone)
Pay off the expensive debt first of course and make sure you aren't paying off a 2% mortgage and missing 7% elsewhere (approx long term equity return IF you can ride the waves without panicking).
GLA