Should I over pay? Advice gratefully received!

Jo_f_3

My partner and I have a 73k mortgage at 5%.we are now in a position to pay it off. We are in a fixed rate 5% mortgage that has an early repayment penalty of £3,652. We will be out of the fixed rate and there for the penalty in September. It looks like it doesn't make sense to pay it off before September. How ever, we can over pay by £500 per month with no penalty, we are wondering if this would be worth doing until September? How much difference would it make to the capital we pay back in September? All advice gratefully received:D

hcb42

All you would save effectively would be the interest on the £2.5-£3K or so that you will overpay between now and September - and this isn't going to make a massive difference for just a few months even at 5%. You will be better off by a small amount of interest effectively. I am assuming that your mortgage rate is far higher than anywhere you might have this spare cash invested already.

Jo_f_3

Thank you for your quick response. I though it might not be worth the faff. The cash isn't earning much interest at all currently, we may take a punt and buy some premium bonds until September in case we get lucky! Thanks again.

getmore4less

Not that much of a faf just set up a standing order job done.

Say 1hr to find the account details and set it up average £3k 6 month @ 5% £75 not a bad return on the time.