Mortgage Overpayment Strategy?

Mr_Curious

Just an update,


I'll be making my first OP tomorrow and I'm quite excited to do so. My thought are to pay off at least the interest that has been added as well as keeping to the nearest £xxx,000.00, £xxx,250.00, £xxx,500.00 or £xxx,750.00.


I understand what you are saying AnotherJoe regarding pensions. I am a lower rate tax payer. I contribute 10% as do my employers so I think that is covered for the time being. I may look to increase contributions in the future.

dannyboy2012

Hi - we make 2 O/P's - one on pay-day (26th) and another one just before the next payday (usually 24th). The first O/P is the minimum commitment we have made to overpaying the mortgage and the second payment is made to top up to what we consider optimal to keep us on track to be mortgage-free by Feb 2022. This just allows us a little extra flexibility should we have an unexpected cost going out. I hold the 'top-up' payment in a separate account so we don't 'accidentally' spend it.