Overpayments vs increased monthly payments

plymothian

Hi, 
I’m due to remortgage in 2 months time, am currently paying £390 pcm for my mortgage but do have the scope to increase monthly payments to £450 and then make the odd OP here are there. I’m just wondering, is it more cost effective to change my monthly payments, or keep paying the same and then make a monthly overpayment of £60? 

I’m remortgaging to a lower interest rate so am knocking a few years off that way. 

I would love to increase our equity for when we (hopefully) move to a bigger house one day, and then hopefully become mortgage free ASAP! 

Thanks for your help

LadyGnome

Unless you are going to hit an annual overpayment limit on your mortgage with your OP I would keep the payment amount the same and OP.  The lower payment gives you flexibility and breathing space if you ever had a financial wobble. You automatically have £60 of flexibility in your budget without having to change anything else.