How to pay off sooner than 22 years and maximise low fix!

Our position:
Mortgage remaining - 22 years
Mortgage outstanding - circa £325k
House value - circa £700k
Current mortgage fix - 4.5 years remaining, 1.39%

We are a couple living together, two kids, two full time jobs. No major debts aside from mortgage! Have standard workplace pensions and some savings, nothing huge as spent a lot into refurbing the house. We would like to pay off the mortgage far far sooner than our current 22 years but currently do not see the point in overpaying the mortgage when the fix rate is so low vs current good savings rate. Realistically, we save about £1k per month on around 2% interest (easy access) but could push that to £1.5k per month if needed.

My question is, are we right to just whack as much money into savings / ISA we can for the remaining period of the 5 year fix and then pay off a lump sum come re-mortgage time to bring the repayments down, or is there a better proposal we are in ignorant bliss about? Our aim is to be mortgage free in 10 years time (age 50!) but at the currently rate of paying we will have a mortgage left around £200k by that time!


  • tacpot12
    tacpot12 Posts: 7,845
    First Anniversary Name Dropper First Post
    A savings account (or cash isa) would be the best option. Saving regularly will also give you a good idea of how much you can afford if your interest rate rises at the end of the fix. 
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • Ok thank you, sounds like we are on the best plan for now!
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