Overpay or Wait?

We currently have a mortgage which is on a repayment basis with 191 months left to run (approx 16 years). In just over 3 years time my wife will retire with a pension and a lump-sum, which will pay off the mortgage. In 4 years time I will be in a similar position.

My question is - should we start overpaying now to reduce the amount owed and what would be a good extra monthly amount to pay, bearing in mind that the maximum number of overpayments would be 36 (wife's retirement)? Our current monthly payment is £730.

Or should we just continue as we are, use half of my wife's lump sum to reduce the amount in three years and then do the same 12 months later when I get my lump sum?


  • Personally, if you are in a financial position to do so, I would start overpaying now if you are able as this will reduce the amount of interest that you are paying on the mortgage. Then (again, if you are able) I would clear the mortgage with your wife's lump sum when it arrives
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  • dimbo61dimbo61 Forumite
    13.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Overpay every penny you can afford and when you do retire you can afford a comfortable retirement
    So unless your savings are paying more than your mortgage rate( after TAX) OVERPAY
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