I'm trying to work out the best level of savings compared to mortgage debt.
DH and I are both high earners.
We have a mortgage of £278000 at 1.99%. Six years left to run and payment is £4,000 a month.
We have money in ISAs of £65,000 at 1.6%
How do I work out whether we'd be better off paying down the mortgage with the isa money? Clearly the mortgage interest is being paid at a higher rate. My gut says keep the money in the ISAs for a rainy day but then the other side is that once we've paid off the mortgage we are £4,000 a month better off and can build up the savings amount again.
I'm generally quite good with money but this is frying my brain.