Over paying mortgage or investing?

Hi guys just wanted some advice on overpaying my mortgage every month. I’ve currently got a 5 year fix mortgage at 1.44% (this was over a year ago I took this out). I am weighing up my options and would I be better off in terms of growth putting my money into index funds or to continue over paying over the 5 years? 


  • WuLiao
    WuLiao Posts: 22 Forumite
    Name Dropper First Post
    MSE's overpayment calculator would be a good start: https://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator/

    Two years ago, when cash returns were nil, the best option was overpayments. Now when cash returns are 3 - 4%, then stuffing the overpayment money into a cash ISA may be more profitable. Index funds over a short horizon like 5 years do come with the risk that you'll actually lose money. YMMV and all that.
    学然后知不足,教然后知困。知不足,然后能自反也 - 礼记
  • Bexm
    Bexm Posts: 455 Forumite
    Name Dropper First Anniversary Combo Breaker First Post
    So as interest rates are higher than the mortgage rate.. Same as ours.. Would it make sense to put our over payments into a savings account and then pay the lump off with interest earned at the end of the year? 
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