What would you do with this financially?

[Unddertsr]

I am very fortunate that at the moment I can save around 700 a month. But… I am a single parent. I have 200k left on my mortgage which I need to re mortgage in a year (currently only on 2.8%).

Would you overpay? Save? I have 50k savings but I want to keep this as a buffer. I know people always compare interest rates for mortgages v savings but in terms of how you feel about a situation which would you do at least until the mortgage is renewed in a year?

How many children and how old are they (asking as late teens is a time when I think they tend to cost more)?

How is your pension?

I'd personally overpay the mortgage (and when you remortgage maybe look for a product where you can take out overpayments; then you can always take money back if you need it for something) and put some in pensions if they need a boost. I think 50K is a good enough savings buffer.

@redskyAtNigh one age 5. What does taking out if you overpay mean? Can you literally ask for it back and they will re calculate the interest presumably?

Depends on a lot of factors. What age are you, what age your kids, how long is left on your mortgage, how reliable is your job?

I would overpay the mortgage. People might say do this or that, but to me, having my house paid off and my monthly bills less and my overall standing more secure / more powerful, I would get that mortgage down. Good for you.

I would consult at least 3 financial advisors as well as your bank. I used to work in this field, but so much has changed in the past few years.

I’m 40 next year and have one child age 5.

I would save half and overpay mortgage with the other half.

Continue saving somewhere with the highest rate I could until remortgage is due next year. Then pay a chunk off.
if you’re maintaining the 50k buffer separately I would use some savings in riskier investments, Martin Lewis did a programme on investing a few weeks ago that was eye opening and quite easy to understand.

I would over pay mortgage

@LeastOfMyWorries thanks, I’ve only got a year though… where would be beneficial?!