Save or Overpay?

katejo

Andrea75 wrote: »

Yes i have a secure pension which will meet my retirement needs thankfully. I know what you mean, it's best to have options and I was thinking of paying half into overayments and putting the other half into my emergency fund. But the other side of the coin tells me to pay as much off as i can which interest rates are low. My mortgage is with Halifax SVR 3.5%. I don't know why I am so fixated with paying my mortgage off asap but I am. I have never had credit cards or debts before (except when I bought my car a few years ago) so i think this is why I am focused on doing what i can to get it paid. Am I alone in thinking like this?

No I am exactly the same. I can't stand debt of any kind and i call the mortgage "a necessary evil". I never borrow for anything else and I virtually always pay my full credit card bill each month.

bobthedambuilder

Andrea75 wrote: »

Yes i have a secure pension which will meet my retirement needs thankfully. I know what you mean, it's best to have options and I was thinking of paying half into overayments and putting the other half into my emergency fund. But the other side of the coin tells me to pay as much off as i can which interest rates are low. My mortgage is with Halifax SVR 3.5%. I don't know why I am so fixated with paying my mortgage off asap but I am. I have never had credit cards or debts before (except when I bought my car a few years ago) so i think this is why I am focused on doing what i can to get it paid. Am I alone in thinking like this?

It seems fairly clear to me that paying off the mortgage is your main target, and there's certainly nothing wrong with that. It's a while since I did, and I still get a good feeling when I remember that everything I have is truly mine, free and clear. Not an asset, just mine.

Look at it another way. It's not too difficult to work out how much you will save by paying off early, and that saving will be in your future pocket (instead of the bank's). I'll bet it's many thousands of pounds. So go for it girl!

GSXRCarlos

good luck, wish i had enough money each month to over pay like you're doing.

As others have said, if you have your emergency fund and pension covered then i'd hammer your mortgage

Once it's paid off you could always remortgage/release equity if you really had to.

I'm currently overpaying my mortgage by £10/month whilst trying to clear debts etc fancy lending me some???

Andrea75

Thanks again everyone for your advice, you all have some great points and ideas on the way forward.

Whether we overpay £10 per month of £100 per month it all helps towards paying off our mortgages that little bit quicker....result.