save or overpay

upsydaisy09

I have a 0.75% above BoE base rate tracker with A&L. Currently costs £334 per month. I have set up a 'preferred amount' to pay and have set it at £500 (as much as i can afford).

(29 yr mortgage, 95% mortgage, not eligible to get 5 yr fixed rates until paid off £9,700 due to LTV i believe)

Have i done the right thing or is it a waste of time, or should i save the difference for future rises (not much i know but its something, and will get us used to paying that amount when rates start to rise).
If you were me would you save or overpay this amount? Thanks.

beecher2

You'd be better to save as you'll get a rate higher than 1.25%. Just keep an eye on the rates and switch to overpaying when you can no longer get a savings rate higher than your mortgage rate. Make sure you don't ever dip into this fund and keep it for overpaying only.