is it worth overpaying ?

asturdy2

iam currently paying £260 a month on a nationwide liftime tracker at 0.94%. I could easily afford the max overpayment of £500 per month but have been saving it at 2.5% instead. When you factor in high inflation is it worth saving the extra of paying off the mortgage. We are looking to move in a couple of years and have plenty of equity. house worth 125000, mortgage of 70000.

beecher2

Keep saving - look at some of the monthly savings deals out there as you might get a better rate. Inflation isn't really relevant as you will be using the money to pay off your mortgage, not to buy goods and services. You're in a pretty good position at the moment. When you move I assume you could port the £70,000 over on the lifetime tracker - any additional funding will be at a higher rate so it makes sense to save as much as possible so as that additional !!!!!!! be as low as it can be.

dunstonh

If you are doing well in your other financial areas, such as your retirement provision and you are maximising your £10,200 a year ISA allowance, then moving onto overpaying is a good option.

Personally, I am maximising ISAs and overpaying the mortgage and I increased the pension. Make hay whilst the rates are low.