Getting Mortgage Free

Marcusian

I have a shared ownership mortgage in the South Wales Valleys - 60/40. 
I was paying 423 a month over 23 years, this month I decided to 'over pay' and raise that to 500 a month, which according to the over payment calculator has take 4 years off it and saved me £4k of interest over the term. 
Without giving my life story, I set up a business just over a year ago as a side hustle (online diet and fitness coach) and it has doubled my income, become my main source of income and it's leaving with an ability to save £500 a month. I think the best use of that money is to pay down my mortgage so i can be mortgage free as quickly as possible.
The total is £95k give or take (only got the mortgage november 2020), and I can over pay up to 10% a year of the amount as of January 1st. 
I am currently on a 5 year fixed rate with Halifax - i believe my rate is circa 3%. .
Anyway - any advice would be welcome, of how best to get mortgage free as soon as possible in this scenario? 
With this spare £500 money coming to me monthly via other revenue streams and my own savings from my wage, should I just increase my monthly payment aggressively (which I can, as i understand, reverse if I was struggling for any reason)? or should I do lump sums each year (so I would know i have the £6k cash there to pay)?
From what i can see there is more savings to be made from the overpayment monthly, but I get that this would mean that rain or shine I would need to pay that payment, where at least with the savings/lump sum option, I can save more during good months, or less if I had a bad month etc.

Any help appreciated. Excuse the essay. lol. 

MFWannabe

Overpay monthly. If you don’t want to overpay by the full £500 split it and overpay by £250 and save remainder, you could always make a lump sum overpayment when you feel comfortable to do so 
Whatever you set the overpayment at you can always change it 
As you’ve only just taken out the 5 year fix it will have a high ERC so it’ll be too early to consider changing 

Marcusian

MFWannabe said:

Overpay monthly. If you don’t want to overpay by the full £500 split it and overpay by £250 and save remainder, you could always make a lump sum overpayment when you feel comfortable to do so 
Whatever you set the overpayment at you can always change it 
As you’ve only just taken out the 5 year fix it will have a high ERC so it’ll be too early to consider changing 

That's a great idea, to split it, thank you. 

MFWannabe

Marcusian said:

MFWannabe said:

Overpay monthly. If you don’t want to overpay by the full £500 split it and overpay by £250 and save remainder, you could always make a lump sum overpayment when you feel comfortable to do so 
Whatever you set the overpayment at you can always change it 
As you’ve only just taken out the 5 year fix it will have a high ERC so it’ll be too early to consider changing 

That's a great idea, to split it, thank you. 

👍 At least then you’re also building an emergency fund should you need money for something else 

dimbo61

You may need to pay 20/40% tax on your second job/ Income stream.
Well done on doing 2 jobs just like Superman or Superwoman so keep a healthy emergency savings pot.

Marcusian

dimbo61 said:

You may need to pay 20/40% tax on your second job/ Income stream.
Well done on doing 2 jobs just like Superman or Superwoman so keep a healthy emergency savings pot.

Yes mate, I save 25% of turn over away for tax on every penny i make with coaching. Definitely worth remembering. 

dimbo61

If you want to be Mortgage Free asap and also need to keep substantial savings to pay Tax bills and other costs of running a business consider an Offset mortgage