Should I overpay?

200 Posts

Hi - had a discussion with a financial adviser about 6 months ago and I raised this subject. His advice seemed to be - don’t bother overpaying your mortgage as you can make a better return than your mortgage interest rate by putting any spare cash into an pension or investment ISA. Do you think this is good advice?
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https://forums.moneysavingexpert.com/discussion/6261664/overpay-mortgage-or-pension
Looking at the economy now I'm quite happy I went down the overpayment route.
Maybe I've done it wrong, but I've now got thrifty & frugal living down to a tee.
Now for the final countdown...
1st Jan 2021 - £29,316
1st Feb 2021 - £28,809
1st Mar 2021 - £27,309
1st Apr 2021 - £26,811
1st May 2021 - £26,315
1st Jun 2021 - £25,811
1st Jul 2021 - £24,311
1st Aug 2021 - £23,809
1st Sep 2021 - £22,305
1st Oct 2021 - £21,798
1st Nov 2021 - £20,292
1st Dec 2021 - £19,783
1st Jan 2022 - £18,276
1st Feb 2022 - £17,762
1st Mar 2022 -£17,248
1st Apr 2022 -£15,713
1st May 2022 - £15,202
1st Jun 2022 - £13,703
1st Jul 2022 - £13,184
1st Aug 2022 - £?????
1st Sep 2022 - £?????
1st Oct 2022 - £?????
1st Nov 2022 - £?????
1st Dec 2022 - £?????
Overpayment Pot @ 1st July = £2333
"Yes, the medicine is harsh, but the patient requires it in order to live, should we withhold the medicine?"
Hopefully at zero mortgage debt or very close to it.
Determined for freedom 🍻🥂🍸🍹.
Mortgage start date first week of July 2019,
Mortgage term 23yrs(end of June 2042🙇🏽♀️),
£12K in 2021 #54 (in 2020 #148)
MFiT-T6#27
To save £100K in 48months start 01/07/2020 @£87460 SoFar
Am a single mom of 4.
Really down to personal preference but from a financial perspective (not emotional) it should work out better to invest when rates are much lower than investment returns. That might not be the case when rates start rising again, the last 15 years have been very benign for mortgage rates.
This is probably the optimal financial planning thing to do but it it probably makes you “feel” like you are spending the pension money faster than you should be.