Mortgage overpayments. Do you, would you?

ben501

The question arises occasionally on the MFW forum so I hoped to ask a wider audience.

With interest rates being so low this can be a good way to save thousands of pounds in interest payments.

Andy_L

No: I get a better rate by saving/investing spare cash than overpaying the mortgage. When/if that changes then i'll pay some off

torbrex

I was addicted to making overpayments on my mortgage, ended up paying it off 9 years early

TBagpuss

Yes. When mortgage interest started to go down I left my payments at the same level (initially because I felt it would then be less of a shock when rates went up again)
I'm currently on course to clear my mortgage 9 years early, and the interest I've saved is more than I'd have got back elsewhere. (also, if (god forbid) I lost my job I could go about 2 years without paying the mortgage, if I had to, without getting into difficulties .

janiebquick

Yes, we do. Over the years we had actually taken out three separate mortgages, making our repayments £500 a month. Two of these were endowment mortgages (yes, I know!), so we paid another £100 a month for these. The first paid out three years ago, resluting in us paying off half of our existing mortgage and bringing the payments down to £300 a month. We have just carried on paying £500 a month since and are deriving hug satisfaction from seeing the sum owed plummet.

Go for it!

Turtle

We do, though we've also taken the full ISA allowance out of it for the last 2 years and invested it at 2% more than we're paying on the mortgage (it's a very low rate). Will pay it back that little bit quicker.

blainestewart

we got our first house two years ago on a 2-year fix. after switching, our payments have gone from £628 to £480. we are carrying on paying £630 to get rid of the mortgage in the shortest possible time.