Should I overpay or save?

244 Posts


Hi all,
I hope you can help. I am normally pretty financially savvy, but I am a little confused here.
I have a new mortgage starting 1st Nov. We are in the lucky position (at the moment) to be able to overpay.
I'm trying to understand if I should overpay monthly or save and overpay in one lump sum.
I have tried the calculators but I just want to clarify.
So, details:
Mortgage rate = 2.99%
Overpay monthly £300 = £3650 in 1 year (£50 interest)
Regular savings account £300 @ 5% = £3697 in 1 year (£97 interest)
There doesn't seem to be much in it, but am I right in thinking I am just about better off putting it into a savings account?
If so, do I repay just before the 12 month anniversary (so this time next year)?
Thanks in advance
I hope you can help. I am normally pretty financially savvy, but I am a little confused here.
I have a new mortgage starting 1st Nov. We are in the lucky position (at the moment) to be able to overpay.
I'm trying to understand if I should overpay monthly or save and overpay in one lump sum.
I have tried the calculators but I just want to clarify.
So, details:
Mortgage rate = 2.99%
Overpay monthly £300 = £3650 in 1 year (£50 interest)
Regular savings account £300 @ 5% = £3697 in 1 year (£97 interest)
There doesn't seem to be much in it, but am I right in thinking I am just about better off putting it into a savings account?
If so, do I repay just before the 12 month anniversary (so this time next year)?
Thanks in advance
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Thanks for the help