Mortgage Overpayment - what's best option?

Newbie_John

My 5 year fixed 2.22% term ends in October 2023, I will have 17 years left then with a balance of £240k.
Now question regarding overpayment (which I can do 10% a year with Barclays).
I may be able to have disposable £20k by then, and as things go let's assume I will end up with 7% rate for the remaining 17 years 
What's better option for me and why?
1) Overpay £20k in one go while on 2.22% as soon as I can and reduce term
2) Overpay £20k in one go while on 2.22% as soon as I can and reduce monthly rate
3) Overpay £20k in one go while on 7% as soon as I can and reduce term
4) Overpay £20k in one go while on 7% as soon as I can and reduce monthly rate
5) Some sort of hybrid options of saving 5% in saving account and switch to monthly overpayment of let's say £110
6) Something else

Currently I'm on £1410 a month (I find it low), but with 7% will hit £2000 (this will significantly reduce my monthly savings but no impact on monthly spending).

jrawle

Do you have the £20k in a savings account that pays 2.22% or more in interest? If so, there's no point overpaying now; you could actually make a small amount extra.

Wait until October 2023, then pay off the £20k and decide what to do at the point you need to choose a new deal. You can then see what rate is available, and choose a new term that is as short as you can make it, while remaining comfortable with the new monthly payment required.

MasterplanC

I second the previous point, if you get more on your savings generally keeping the money out of the mortgage is a good choice. But the right strategy might also depend on whether overpaying could bring you on to a better LTV bracket for remortgaging than having the savings separately.

Newbie_John

Ok, thanks both, I'll do that, I will keep money in best saving account possible and then when my fixed term is about to expire decide what's best 3,4,5. Thank you