Is it wise to overpay double?

[Deleted User]

I have recently taken out a mortgage. Since then I have found a job paying more and I can now pay double each month. The lender allows it and I see this as a good thing as when my rate ends in five years I will have less on the mortgage to pay back which equals less interest. Would there be any drawbacks? I will save an emergency fund for the first six months before staring the double payments and have enough left over for bills and a modest life.

Rachelredwood16

Congrats on the new job! I don't see any reason why it would be a bad idea if your lender allows those overpayments! Then if something should happen where you need to reduce the amount then you can just pay less again. 

K_S

[Deleted User] said:

I have recently taken out a mortgage. Since then I have found a job paying more and I can now pay double each month. The lender allows it and I see this as a good thing as when my rate ends in five years I will have less on the mortgage to pay back which equals less interest. Would there be any drawbacks? I will save an emergency fund for the first six months before staring the double payments and have enough left over for bills and a modest life.

@strictgold5208 As the poster above said, if you can overpay without a penalty, then there's nothing stopping you doing that.

Depending on the rate on your mortgage, it may also be worth comparing overpaying to putting the extra cash in a top savings account.