This question might be too simple, but I just want to make sure I am not missing a crucial detail.
I currently have a mortgage which allows free overpayments (up to 10% of the mortgage value each year). Let's say I wanted to put an extra £300 a month into my mortgage as an overpayment, which I can do without penalty. For the next two years I am on a rate of 1.99% interest.
However, I can get a bonus saving account at 6% gross for 12 months and pay in £300 a month into that instead.
On the simple fact that the 6% is a bigger number, am I right in thinking I should put the £300 a month into the savings account instead, and then when that matures, pay off part of my mortgage as a lump?