At what point do you think overpaying is no longer worth it?

RedFraggle

Also consider your pension arrangements. You may be better long term putting extra into that

Grenage

I considered this a few years ago, and decided to put the money into a S&S ISA. Six years on I've averaged 10% p/a, which is a hell of a lot more than my mortgage rate.


As letitbe90 mentioned, the money is also available in the event of a crisis. Markets fluctuate, but the impact on your original sum lessens with time.

AdrianC

Planet_Switzerland wrote: »

However, in the final year of my mortgage the interest will be just short of £300 and in my mind it's not worth paying double what you need to just to save less than £300.

Are you overpaying enough that you're denying yourself things you would rather be doing/having? Or would you be investing that monthly outgoing instead?

If you "overpay" by the same as your standard payment, then - sure - you've only got twelve months left on the mortgage. Or just six at the rate you're paying. So, yes, you're paying £300 less interest... but getting to mortgage-freedom six months earlier. You can have half of the increased disposable income for the next twelve months, or all of it six months earlier.

£300 saved over six months is £50/month.

markin

If you pay it of early at the age of 40 or 50 then you get time to enjoy that extra money while still young, you could always drop dead at 65 and never see any of that pension money.