Paying overpayments, but should I use savings towards mortgage ?

wotsthat

kph100 wrote: »

Owe £123,000 on mortgage at 6.39% 25 year fixed, am overpaying at moment that if continue shall pay off in 13 years.

My priority would be to see if it's worth stumping up the £5000 ERC and getting a better fixed rate. Even Nationwide have a 5 year fix which is full 3% better than that. You'd breakeven after only 18 months and for the rest of the 5 years you'd save around £12,000 in interest.

Moving cash savings around for 0.5% improvements should be way down the to do list especially when there's the opportunity to save so much money.