Ideas for what to do with savings?

[Mamadeisa2016]

Hi mums! looking for ideas from some savvy mums for some savings we have . We are looking to buy a new house in about 2 - 2,5 years time, but we don't know what to do with the savings we have so far (c.£50k). Any ideas? we have thought about doing a capital repayment on existing mortgage to reduce mortgage payments slightly but not sure that's if that's the best use?
Any ideas welcome! TIA

If your current mortgage rate is higher than you can get in savings, and you can overpay, do that. But many mortgages are around 1-1.5% and even instant access accounts can beat that (There's a new one that pays 1.5% up to £250k)

If you're sure about not wanting to move for a couple of years, you could look at fixed rate savings for around 2% interest, which could be higher than your mortgage rate, so that's the best thing to do. Have a look on moneysupermarket to search for savings accounts and see what is available.

Whatever you do, probably worth keeping £5-10k back so you have money available in case of unexpected expenses or loss of income.

Many thanks BarbaraofSevillle, much appreciated!

Don’t forget you have to pay tax on your savings interest (unless it’s in an ISA) so it isn’t a straight IR comparison between savings and mortgage IR

Only if you earn more than £1k pp per year, or £500 pp for higher rate tax payers. If they share the money, tax on the £50k is easy to avoid.