Am I going about this the right way??


I’m wanting a bit of advice on whether to wait 2 years to pay my mortgage balance off or if I should make monthly overpayments.

So currently I am saving up so that in precisely 1 year and 11 months time I can pay the balance of my mortgage off. Deets below:

Mortgage amount 50,500.00
Interest 2.99 - fixed term 5 year mortgage with 1year and 11 months left to go
Mortgage term left 13 years 11 months
Balance at end of the 5 year term will be 38k

Savings 48k
28k of which is in an isa at 3% (BS advised that I can’t put any more money into this as it’s fixed rate for 5 years ending this October and as it’s quite a good rate I’ve left it there so that’s why the full 48k isn’t in there)

My question is should I be using my savings to over pay on my mortgage or does my plan sound ok to pay the balance off in 2years time. My goal is to have another 20k saved by then so I will have money for emergencies. Would anyone pay off now?

Sorry I’m not very financially savvy so would appreciate anyone’s thoughts.



  • beanieloubeanielou Forumite
    83K Posts
    Part of the Furniture 10,000 Posts Mortgage-free Glee! Name Dropper
    If I was you I would pay off as much as you can without penalty.
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~**
    MFW. Finally mortgage free February 2021****
    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. ***Be the difference.***
  • unkleunkle Forumite
    338 Posts
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Consider an offset mortgage, same as paying it off but cash is still there for you.
  • I'd consider whether paying into your pension is a better option, given the tax advantages.
This discussion has been closed.
Latest MSE News and Guides

Boost your Nectar points

Get up to £25 this Saturday

MSE News

Preparing for summer

What MoneySaving things can you do now to get ready?

MSE Forum

Hot Diamonds 40% off code

Including already-reduced outlet stock

MSE Deals