Should I pay it off?

stripee

My situation
1 yr into a 25 year repayment mortgage. Currently 4.69% fixed for the next year. When I'll almost certainly remortgage for the best deal rather than pay "standard rate". Currently paying about £750 monthly.

My Proposal
Hope to be a bit better off financially in the next few months so thinking about paying off an additional £100/month

My Question
Should I try to pay off my mortgage earlier than the term over which it's been set up? Is there an optimum/maximum total (or percentage of current payment) to pay off?

A Calculator
I was surprised not to find one on this site, which probably means I've not been looking in the right place, but found one by googling (unsurprisingly, in hindsight) "mortgage overpayment calculator".

My potential saving
At 4.7%, 25 years at £100 extra apparently means I can save 5 years and £20K.

Being a dummy
Why is the amount I save not more than the extra amount I have physically put away? I could put £24K into a savings account over the same period. I would expect it to save me more than that due to the fact that I am borrowing the money for less time?

Is this due to the simplicity of the calculator or of my mind? If the above was true, would I not be better off putting it in a high interest account?

Can anyone advise?

I feel I am missing something pretty fundamental

David_B_2

I would highly recommend going to the 'Mortage free wanabe' section on here if not done already and they will answer your question all day long, plus you get good advise from people in the same boat.

http://forums.moneysavingexpert.com/forumdisplay.html?f=98

Plus goog calulator can be found here

http://new.egg.com/visitor/0,2388,3_54988--View_1028,00.html

Good luck :cool: