MFW: Is This A Good Idea?

mfw_bc

Hi everyone, long time lurker first time poster

Been looking at ways to reduce the mortgage and have come up with what I think is a reasonable idea that I would like any comments on.

Using the scenario below, as long as my wife and I both carry on working (we are 32 and 33) we could continue to live a happy life and save around £500 a month. The scenario below leaves £5,000 in savings (we have around £35,000) even if we couldn't save anything.
Also, the mortgage I envision below is sort of a safety one just in case one of us is out of employment and also keeps a nice chunk of savings aside as we go along.

So my questions are, is this a good way to do it (obviously to reduce the mortgage time drastically) or would a different way be better?

mfw_bc wrote: »

I take it the image is thought of as spam? I thought it would be easier to show that way rather than write it down. If it is the image, heres the text version.

£88,000 20 year mortgage
£625 a month payments with £600 a month in overpayments
£15,000 extra paid off in Year 1
£15,000 extra paid off in Year 2

With £5,000 left in savings + £500 a month over 3½ years that would give, not including interest, a savings pot of £20,000, £10-15,000 of which could be used to pay off the rest of the mortgage leaving us mortgage free in 3½ years time ... I think

Again, thanks in advance to anyone who replies

Many thanks in advance