Mortgage Free in 2024 but V. confused if I'm doing the right thing.

Hi! I was hoping that someone may be able settle my confused mind! 

We plan on paying off our mortgage in July 2024. 
The remaining term is 11 years and 2 months but the first 5 years of the mortgage was fixed at 2.04% and this fixed term expires on 1.7.24 and the early repayment charge also expires on 30.6.24 - so we can pay the remaining amount of the mortgage off completely on the 1.7.24 (that's the idea anyway as long as everything goes to plan) 

We are able to overpay our mortgage by 10% each year and we have done this for the last two years. When we have received our statement I have noticed that our term has not been reduced by our monthly payments have, not dramatically but by aprox £65 per month. The mortgage was recently at £74,000 and our monthly payments were £618.00, I overpaid £7,400 and now the payments are £556.00 per month with a remaining mortgage balance of £66,600. Next year we will also overpay by 10% of the balance and then by July 2024 the mortgage balance should be roughly £50,000 which hopefully we can pay off. 

The question I wanted to ask was, and having read that the best thing to do is have the term reduced rather than the monthly payments if it's possible, but if we are planning on paying off our mortgage in the next couple of years anyway does it matter too much for us? I'm not even sure that they will reduce the term as we weren't asked, but I just wanted to check if I'm even doing the right thing by overpaying in the first place or should I just save the money and pay it all off in full in 2024. 


  • Sistergold
    Sistergold Posts: 2,004
    First Anniversary First Post Name Dropper Photogenic
    Hello. If I were in your position I would not worry about reducing the term now as you will be paying it off anyway. Alternatively if I was not paying it off you can then reduce the term on 1/7/2024 as it’s fixed. Well done that you are not too far off being able to pay it off. 
    Initial mortgage bal £487.5k, current £266.8k, target £243,750(halfway!)
    Mortgage start date first week of July 2019,
    Mortgage term 23yrs(end of June 2042🙇🏽♀️), 
    Target is to pay it off in 10years(by 2030🥳). 
    MFW#10 (2022/23 mfw#34)(2021 mfw#47)(2020 mfw#136)
    £12K in 2021 #54 (in 2020 #148)
    To save £100K in 48months start 01/07/2020 Achieved 30/05/2023 👯♀️
    Am a single mom of 4. 
    Do not wait to buy a property, Buy a property and wait. 🤓
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