Windfall: how do I balance early repayment charges against paying off mortgage later

nelbows

We've had some luck and are in a position to repay our mortgage. It's a 5-year fix at 1.89% which ends in April 2022. There are early repayment charges (3% up to April 2021, then 2% to April 2022), although we can pay off 20% per year without charge.
Instead of repaying immediately, we could put the capital to work elsewhere and avoid the ERC (maybe savings -- 1% possible?; stocks -- though 2 years seems a short time frame and volatility eek!). We'll probably be basic rate taxpayers over the next two years.
I am trying to do the maths, to see whether we should pay off now, or April 2021, or April 2022. We will of course make the charge-free payments as soon as allowed. But the mortgage company won't tell me what amount I would owe in April 2021 (assuming I make the standard monthly payments) and won't tell me the current ratio of interest to capital in my monthly repayments. So I'm not sure how to work out the cost of the different options. Can anyone point me in the direction of a nifty calculator, or tell me if I'm making this unnecessarily complicated?
(PS I've had a scout through previous threads and can't see anything relevant, though do please point me at anything I've missed).
Thanks very much in advance for any thoughts.

amnblog

You can do the maths all day long.
The smarter approach is to do whatever makes you feel more comfortable - by the nature of your suggestion I imagine that is clearing the mortgage.

nelbows

Thanks v much for your post, amnblog. I'm happy to keep the mortgage for a couple of years -- comfortable either way. But would like to be able to work out what the difference in total cost is between clearing it now, and clearing it later, so I can balance risk and gain.

strawb_shortcake

Try http://mobile.whatsthecost.com/mortgage.aspx
Put it as interest only then put your monthly payments in the what you pay box. 
I've found it's been pretty spot on for the over payments we've made.

Thrugelmir

Avoid stocks for your money. The past few weeks have shown how volatile the markets are in the short term. There's no investments which guarantee a 3% net return over a 12 month period either. 
By redeeeming your mortgage in May(?) after making the maxium permissable overpayment. You could consider upping your pension contributions using the money saved. You'd benefit from tax relief at your highest rates. Providing a boost to your savings. Negatating the 1.11% you lose. 

nelbows

Thanks annabana, I'll take a look. And yes, pension payments a good way to save!
Thanks all

getmore4less

Ask the lender how much to reduce the term to increase the payment.
Overpaying now cost 1% more than next April and if you can get 1% on savings that's around 2% covered. 

April next year the 2% is more than the interest you will get charged keeping it going.