Opinions please

CathA

We have a very small mortgage with 8 years left to run. At the moment I overpay regularly £15 per month, plus any extra every now and then. The overpayment calculator says this will reduce the term by 5 months approximately.

For various reasons we are going to have at least £1000 'spare' per year over the next few years and I'm not sure what to do with it. I have a variety of options and would appreciate your thoughts.

1. Pay the £1000 into my Santander account to get the interest. My interest on the mortgage is roughly the same as Santander, though obviously that may change.
2. Pay the £1000 off of the mortgage (plus the £15 monthly) which the mortgage calculator says will pay off the mortgage 2 1/2 years early approximately. That would leave us with 2 1/2 years of mortgage payments we could then save or-
3. Pay the money into a pension for either me or my husband, thereby receiving the tax relief.

With the budget coming soon, I realise that tax relief on pensions may change and could be better, worse or stay the same, so depending on what happens then I am not doing anything pension-wise at the moment. However, if the tax relief is abolished completely, I'll be selling the souls of my unborn grandchildren to get as much money as possible to pay into a pension before the tax relief stops!! We are both working and qualify for basic tax relief, if that helps.

4. I could pay the money into a pension and in 5 years time take it out and pay a chunk off the mortgage, which by then could clear most of it. (I do have other pensions, by the way).

I've looked at the figures six ways til Sunday, and none of them seem a bad idea, but what is the best?

For information's sake, our mortgage is about £20,000 and repayments about £250.

All suggestions gratefully received. Thanks.