Overpaying mortgage for next 2 or 3 years

skeeto

I have a lifetime base rate tracker with the Northern Bank (N Ireland) which tracks at 0.37% above the banks base rate of 0.5% (therefore 0.87%).

My mortgage stands at £86K (with 20 years remaining) and I have been overpaying by about £150 per month for the past year. We have 2 young children and would like to move to a slightly larger house in the next 2 or 3 years as we are a bit pressed for storage room.

Should I just start to overpay like crazy for the next 2 or 3 years to reduce my LTV - I could probably overpay by about £250 per month.

I am reluctant to give up such a good mortgage rate and am imagining that house prices are going to remain reasonably stable for the next few years. The alternative is to make the move now while new mortgage deals are still reasonably competitive? My wife would like to move sooner rather than later whereas I would like to try and overpay as much as possible whilst the rate is so low. Any advice on the pros and cons of each would be greatly appreciated.

Many thanks

dshart

I think you are right not to give up such a good mortgage rate. If you compare the average rate you could get now on a mortgage to your current deal I think you will find the difference will almost equate to what you are overpaying.

Unless the current rate is portable to a new mortgage I would hang onto it. It may be better to struggle for space than to struggle to pay a new mortgage.