Overpay mortgage or save ?

Hi all,
I am currently in a position to overpay my mortgage. 
The original loan amount was 240000. The balance is currently 214065 and I have 14 years left on the mortgage.
the current interest rate is 2.74 fixed for the next 4.5 years. I have between £300 - £400 to overpay/save.
question is should I put it in a regular savings account or overpay? I know there are regular savings accounts well in excess of 2.74 but I’m not sure it’s as simple as just saving at a higher rate?😂
thanks in advance


  • The MSE mortgage overpayment calculator now has a savings comparisons 

    Mortgage at 30: £204,750  (08/2020)
    Current mortgage: £154,369 (02/2024)
    Goal: £145,000 by 02/2025
    End goal: Mortgage free asap! 
  • timc1619
    timc1619 Posts: 15
    First Post First Anniversary
    Thanks Friday. I have been on the comparison tool and it suggests I’d be better off saving. However that’s based on the full term of the mortgage. I imagine saving interest rates will come down with the base rate when inflation is under control again so in the short term (the next 4 years) I’m still not sure on the best option. Thanks anyways😀
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