Overpayments

rising_from_the_ashes

I remortgaged last year (repayment mortgage, lifetime tracker)..

I am thinking of overpaying but can't afford to pay very much extra so a couple of quick questions:

1) is it worth overpaying if it's just say £10 or £20 / month or should I put the money into a savings account instead?
2) would it be better to save this up and make a lump sum payment once I've got to £100?
3) will it make a big difference to how quickly I pay the capital side of the mortgage off?

Thanks

latecomer

Put the figures in here:

http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator

Most people recommend that you have some savings first just incase you need it.

Thrugelmir

If you've an overdraft tackle that first.

trailingspouse

The down side of putting your surplus into paying off your mortgage is that if there's a rainy day round the corner, you can't get that money back. If you save it, then later you can use it to pay off your mortgage, but in the meantime if you have some sort of emergency the money is available. I would tackle things in this order - pay off expensive debts (pay day loans, credit cards), pay off overdraft, build up savings (to the equivalent of at least 6 months salary, using ISA's as appropriate), then think about paying off your mortgage.