Mortgage Over Payment Or Keep The Cash In Bank Account?

[OldChestNuts]

What would you guys do if you have the choice of over paying the mortgage monthly (2% interest) and ISA saving is 3%. Would you be tempted to save it in the ISA.
Any logic thinkers here?

[Old_Geezer]

IMO interest rates of 2 or 3 percent are so pathetic, and so little difference between them, I'd rather get rid of the debt even if that look slightly less beneficial. Remember though, rates are rising.

[LadyCG]

Overpay your mortgage. If you've got the relevant APP on your phone you can make anytime / one-off or regular payments, but there is a yearly limit on what you can pay off before being charged early repayment or whatever it is.

[Zacs-Master]

I thought you’d paid off your mortgage?
https://www.theanswerbank.co.uk/Home-and-Garden/Question1710578.html

[LadyCG]

He might have another one by now, Zacs. Depends how many properties he's got.

[Zacs-Master]

Mmm.

[OldChestNuts]

@ LadyCG you are right I got multi properties. The mortgage in question is a 2% fixed for the next 10 years, hence dilema to throw in more over payment or put in savings account.

[Gizmonster]

The obvious answer is if the net interest paid by the bank is higher than the mortgage rate, then stick it in the bank.
Although the temptation would be to pay a chunk off the mortgage, you can do that at anytime with the money in the bank account, as long as it's not tied up .... so if in the future you find yourself in a position where the mortgage rate is higher than the savings rate, you can withdraw the money pay a chunk off the mortgage, but remember to keep some back for emergencies, etc.
In my opinion, interest rates are only going to rise in the near future and seeing how you're fixed at 2% for the next 10 years, I personally would just pile all my spare cash into a savings account, as long as it pays over 2% net ..... but be wary of tying it up for too long, in case things change suddenly.