repay more than standard mortgage payment to reduce mortgage quicker?

Jezza35

I have suggested repaying into our mortgage account a little more each month so that the mortgage will clear sooner. However, because of very low interest rate (1.47%), is it worth doing so? I think it is given that the balance is circa £163k.

zemarcopolo

What would you do with the money if you do not overpay your mortgage? That's what will decide whether or not it is worth it.
If you invest the money with a potential returns above 1.47%, it may be a better idea that mortgage overpayment. But investments do not guarantee profits. 

If the money is just going to stay in the account,  you are probably better off paying the mortgage early. 

grumiofoundation

If you will spend the money overpay.

If you will keep the money in cash earning <1.63% interest then probably makes sense to pay (assuming you are willing to sacrifice access to money). 

If you will invest all/some of the money (especially via pension or lifetime ISA due to top up from tax relief/government bonus) you will likely beat 1.63% in the long-term. However as said above this is not guaranteed and obviously if interest rates rise dramatically you may end up getting lower returns in the short/medium term (and again money not accessible in pension).

Another thing to consider is your LTV band and if overpaying (whether monthly or saving up and paying a lump sum when re-mortgage) could get you into the next band. 

All this assumes you have enough accessible cash to hand for your needs/emergencies etc.