Temporarily Diverting Mortgage Overpayments

Hi, up until now we have been overpaying our mortgage by around £300 per month.
My partner is in the leisure industry so has been on furlough for a number of months now.  There is some job concern once things "get back to normal" after this pandemic.
Rather than continue to make overpayments directly to the mortgage, I'm temporarily diverting the money to a separate savings account.
Worst case scenario is that we have access to this additional money rather than it being tied up in mortgage overpayment.
Best case scenario is jobs are safe and at some point in the future the diverted cash is redirected back to the mortgage as a lump sum.
I know we will be missing out on saving some interest on the mortgage but it seems like a worthwhile sacrafice for some additional piece of mind in these uncertain times.
Is anyone else in a similar boat or anything else is should be thinking about?

Comments

  • Hi _Scott_
    I did the same thing when lockdown happened, and in fact havent made many OPS since April but have saved cash. I felt that was safer and certainly helped after being made redundant at the end of Sept. I start a new job next week and will review things after probation. Yes probably missing out on saving a bit of interest versus paying it off, but right now the cash in my pocket id=s far more preferable. 

    MM

    O'Payments:2016 - £3641.262017 - £7779.282018 - £11,515.16MFiT-T4 # 59 - reduce mtg to £195,000; MFit-T5 - reduce mtg to £140,000Mortgage:01/2/2015 - £243,75031/12/15 - £235,906.7131/12/16 - £224,120.9831/12/17 - £210,224.0631/12/18 - £190,821.21Mortgage today £140,788
  • Hi Scott, these are similar thoughts to what I have had but I love to see the mortgage numbers coming down to keep me motivated. Have you got an emergency fund? I would  make sure you have enough for 6-12 months expenses due to current climate and then perhaps you could do half save and half to mortgage of any extra money? therefor getting the best of both worlds? Also check if your mortgage provider allows you to draw back any overpayments or allows you to have a mortgage holiday if you have made extra payments as these may affect your decision. 

  • Hi Scott, these are similar thoughts to what I have had but I love to see the mortgage numbers coming down to keep me motivated. Have you got an emergency fund? I would  make sure you have enough for 6-12 months expenses due to current climate and then perhaps you could do half save and half to mortgage of any extra money? therefor getting the best of both worlds? Also check if your mortgage provider allows you to draw back any overpayments or allows you to have a mortgage holiday if you have made extra payments as these may affect your decision. 

    Hi chocolate teapot, I love the mortgage numbers coming down too so this is really hard for me 😀 we do have an emergency fund but I'm probably being overly pessimistic!  Our worry is many jobs will be lost because of the pandemic and getting a new one might take a while as there will be a lot of competition...  we can ask for a payment holiday but I probably prefer holding back the cash so the decision is in our hands and not the bank.
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